Autonomous demand and the warranted rate of growth

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

Unless equality is exogenously imposed between the rate of growth of autonomous demand and the warranted rate, a given rate of growth of autonomous demand generates various ‘short-period’ warranted rates of growth, period by period. In a stable case, these ‘short-period’ warranted rates converge to a unique ‘long-period’ warranted rate, this being determined independently of the rate of growth of autonomous demand. Thus one has a non-steady path of normal output growth. Different rates of growth of autonomous demand engender, for one and the same configuration of normal income distribution, different paths of normal output growth. Moreover, in a circulating-capital-only model with a given constant rate of growth of autonomous demand, different initial rates of growth in aggregate demand also produce different paths of normal output growth. These results point to the importance of effective demand in capital accumulation.

Original languageEnglish
Pages (from-to)1-18
Number of pages18
JournalContributions to Political Economy
Volume19
Issue number1
DOIs
Publication statusPublished - 2000 Jan 1

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demand
capital accumulation
income distribution
equality
Output growth

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics and Econometrics

Cite this

Autonomous demand and the warranted rate of growth. / Park, Man Seop.

In: Contributions to Political Economy, Vol. 19, No. 1, 01.01.2000, p. 1-18.

Research output: Contribution to journalArticle

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