Template-type: ReDIF-Paper 1.0
Author-Name: Nomaler, Önder
Author-Email: nomaler@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Spinola, Danilo
Author-Email: spinola@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Author-Name: Verspagen, Bart
Author-Email: verspagen@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Title: Schumpeter and Keynes: Economic growth in a super-multiplier model
Abstract: We present a model of economic growth that is based on Keynesian ideas
	 (the role of autonomous demand in economic growth) as well as
	 Schumpeterian notions (technological change). Our model fits in the
	 Sraffian supermultiplier (SSM) tradition, and we endogenise the growth
	 rate of autonomous demand, and semi-endogenise productivity growth. The
	 basic model has a steady state that is consistent with a stable
	 employment rate. Consumption smoothing (between periods of high and low
	 employment) by workers is the mechanism that keeps the growing economy
	 stable. We also introduce a version of the model where the burden for
	 stabilisation falls upon government fiscal policy. This also yields a
	 stable growth path, although the parameter restrictions for stability
	 are more demanding in this case.
Classification-JEL: O31, O33, O41, E11, E12, E62
Keywords: Economic growth model, Sraffian supermultiplier, Research and Development,
	 R&D, Keynesian theory, Technological change
Series: UNU-MERIT Working Papers
Creation-Date: 20201106
Number: 2020-049
File-URL: https://unu-merit.nl/publications/wppdf/2020/wp2020-049.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2020049