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The Hicksian Trade Cycle with Floor and Ceiling Dependent on Capital Stock

Puu, Tönu, 1936- (author)
Umeå universitet,Centrum för regionalvetenskap (CERUM)
 (creator_code:org_t)
Elsevier BV, 2007
2007
English.
In: Journal of Economic Dynamics and Control. - : Elsevier BV. - 0165-1889 .- 1879-1743. ; 31:2, s. 575-592
  • Journal article (peer-reviewed)
Abstract Subject headings
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  • This article reconsiders the Hicksian multiplier-accelerator model with 'floor' and 'ceiling'. The new thrust is that these constraints are tied to the actual stock of capital, the floor to the depreciation on this stock, the ceiling to capital as a limiting production factor according to the fixed proportions technology that also underlies the principle of acceleration. For capital formation just the Hicksian investment theory is used. The result is one unified model creating economic growth and growth rate cycles.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

business cycle models
multiplier-accelerator models
floor-ceiling models
complex dynamics
Economics
Nationalekonomi

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ref (subject category)
art (subject category)

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Umeå University

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