Thursday , November 21 2024
Home / Naked Keynesianism / Investment Rate, Growth and Accelerator Effect in the Supermultiplier Model: the case of Brazil

Investment Rate, Growth and Accelerator Effect in the Supermultiplier Model: the case of Brazil

Summary:
A new paper by Julia Braga, that she will present at the next Eastern Association Economic Meeting in Boston. From the abstract: "This paper investigates the role of demand in the productive investment evolution in the Brazilian economy. First, it assesses the long-run relationship between investment rate and GDP growth, taking annual data since 1962 until 2015. We then construct a “Final Demand” index and estimate its impact on productive investment growth rate, taking quarterly data since 1996q1 until 2017q2, highlighting a shift in the aftermath of the 2008 world economic crisis. The results support two hypotheses of the Supermultiplier model of Freitas and Serrano (2015) and Serrano, Freitas and Behring (2017) for the Brazilian economy: 1) non-capacity creating expenditures lead

Topics:
Matias Vernengo considers the following as important: , , ,

This could be interesting, too:

Matias Vernengo writes 30 years of the Real Plan: Unoriginal Lessons from Latin American Stabilizations

Matias Vernengo writes Brief note on public debt and interest rates in Brazil

Matias Vernengo writes Lula’s fiscal problems

Matias Vernengo writes Book Presentation “India from Latin America. Peripherisation, Statebuilding, and Demand-Led Growth” by Manuel Gonzalo

A new paper by Julia Braga, that she will present at the next Eastern Association Economic Meeting in Boston. From the abstract:

"This paper investigates the role of demand in the productive investment evolution in the Brazilian economy. First, it assesses the long-run relationship between investment rate and GDP growth, taking annual data since 1962 until 2015. We then construct a “Final Demand” index and estimate its impact on productive investment growth rate, taking quarterly data since 1996q1 until 2017q2, highlighting a shift in the aftermath of the 2008 world economic crisis. The results support two hypotheses of the Supermultiplier model of Freitas and Serrano (2015) and Serrano, Freitas and Behring (2017) for the Brazilian economy: 1) non-capacity creating expenditures lead productive investment; 2) there is a very slow adjustment of the investment rate to demand growth, as described by the flexible accelerator process."

Read full paper here.
Matias Vernengo
Econ Prof at @BucknellU Co-editor of ROKE & Co-Editor in Chief of the New Palgrave Dictionary of Economics

Leave a Reply

Your email address will not be published. Required fields are marked *