An empirical assessment of two testable hypotheses of the Sraffian Supermultiplier for Argentina-Reference-Cited by-同舟云学术

An empirical assessment of two testable hypotheses of the Sraffian Supermultiplier for Argentina

Published:2024-07-04 Issue: Volume: Page:
ISSN:0026-1386
Container-title:Metroeconomica
language:en
Short-container-title:Metroeconomica

Author:

Dvoskin Ariel¹,Médici Florencia²^ORCID

Affiliation:

1. National Scientific and Technical Research Council (CONICET) and National University of San Martín San Martin Argentina

2. National Scientific and Technical Research Council (CONICET) and Institute of Studies in Science, Technology, Culture and Development (CITECDE) National University of Rio Negro Bariloche Argentina

Abstract

AbstractWe conduct empirical analyses on Argentina from 1998 to 2023 to provide new evidence that GDP growth rate ultimately depends on the growth rate of autonomous demand, in line with the Sraffian Supermultiplier (SSM). Firstly, we estimate a Vector Equilibrium Correction Model (VECM) to establish the weak exogeneity of autonomous demand components, with output adjusting to long‐run deviations between these autonomous components and GDP. Secondly, we test a mechanism adjusting productive capacity to demand based on the flexible accelerator principle. Employing a VAR analysis, we present evidence that investment share is Granger‐caused by GDP, supporting the SSM framework.

Publisher

Wiley

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1111/meca.12472

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