scholarly journals Productive Structure in the Neo-Kaleckian Model of Growth and Distribution: Simulations to the Brazilian Economy

2016 ◽  
pp. 273-288
Author(s):  
Danilo Sartorello Spinola
Author(s):  
Joan Oller Guzmán

This paper tries to explain the first results obtained on trench 102, located on the southwestern area of the ancient harbour of Berenike. Chronologically the trench runs from the Late Hellenistic to Roman Period, showing different uses of this area during Antiquity. Some of the data recovered are quite interesting in order to understand the evolution of this scarcely known area of Berenike’s harbor. The identification of a metallurgical furnace related to the Late Hellenistic Period is especially remarkable, as it provides some insights about the structure of this zone under the last Ptolemaic rulers. So, the main objective of the paper is to offer new data about the productive structure of this site during the Ptolemaic period with special focus on the metallurgical production.


2021 ◽  
pp. 121-124
Author(s):  
Jesús Huerta De Soto

A careful reading of the quotations that Hayek left us upon his death on hundreds of cards explains what is, in his opinion, the ultimate and definitive test of whether or not someone is a true economist. It is curious to draw attention to the fact that Hayek had already referred to this matter in Appendix III to his Pure Theory of Capital, which he wrote in 1941 and which ends with the following words: «More than ever it seems to me to be true that the complete apprehension of the doctrine that ‘de-mand of commodities is not demand for labour’ is ‘the best test of an economist’» (Hayek 1976, p. 439). Here, Hayek wishes to highlight one of the key points of the theory of capital: the real productive structure is very complex and is formed by many stages, in such a way that an increase in the demand for con-sumer commodities will always be detrimental to employment in the stages furthest away from consumption (which is precisely where most of the workers are employed). Or, in other words, the employers can perfectly well earn money, even if their rev-enue (or «aggregate demand») drops, if they reduce their costs by replacing labour by capital equipment, thus indirectly gen-erating a significant demand for employment in the stages of capital goods production furthest away from consumption (Huerta de Soto 1998, pp. 213-313). It is more than illustrative how Hayek, in the select group of quotations on economic theory that he has left us in hundreds of his handwriting cards, wished to refer, once again, to these key ideas of the theory of capital. Effectively, Hayek now tells us that «Investment is more discouraged than stimulated by a high de-mand for consumer goods, and so is employment because in an ad-vancing economy more workers are employed to work for the distant fu-ture than for the present»(emphasis added). And he also says that «In the end is the decrease of final demand at current prices that leads to new investment to reduce costs». Therefore, Hayek con-cludes that «employment is not determined by aggregate demand». In short, for Hayek, the best test for an economist is to understand the implicit fallacy contained in the underconsumption theories and in what is called the shrift paradox or paradox of saving: «It is not consumer’s demand that secures the generation of incomes. It is investment of the excess of incomes over consumer’s expendi-tures which keeps incomes up». A large number of economists are unable to understand these principles because they adopt the macroeconomic aggregate approach that Hayek considers to be a serious error that leads, in the final analysis, to social engineering and socialism («Socialism is based on macroeconomics —a scien-tific error»). The only way of understanding what happens at «macro» level is by using microeconomics: «We can understand the macrosociety only by microeconomics». Furthermore, even the Chicago School monetarists are victims of this error: «Even Milton Friedman is reported to have once said ‘we are all Keynesians now’». The approach based on the model of equilibrium and mac-roeconomics is erroneous because «a science which starts with the conceit that it posses information which it cannot obtain is not a science». The same may be said of Welfare Economics, which, for Hayek, is «the spurious scientific foundation of socialist policies».


Author(s):  
Glauco Arbix ◽  
Luiz Caseiro

The recent wave of internationalization among Brazilian companies differs from past experiences, in terms of volume, reach, destination and quality. Brazilian multinationals are not restricting their activities solely to regional markets, nor are their first steps entirely directed towards South America. In amount of investment and number of subsidiaries there are signs they prefer assets and activities in advanced markets—including Europe and North America—where they compete on an equal footing with major conglomerates for a share of these markets. Some Brazilian companies have previous internationalization experience, and a significant portion had been prepared and initiated outward growth in the 1990s, after the economy opened up. However, the boom of internationalization that began in 2004 took place in such unusual conditions as to deserve highlight and special analysis. This chapter discusses the recent expansion of Brazilian multinationals as a result of: (1) the functioning of a more responsive and targeted system of financing, (2) transformation of the Brazilian productive structure, which led to the emergence of a group of companies seeking internationalization as a strategy, (3) preference for seeking more advanced economies as a means to expand access to new markets and suppliers, as well as to absorb innovations and technology, (4) the State’s performance in several dimensions, especially in financing the implementation of policies which support the creation of large national groups with a presence in the globalized market.


2020 ◽  
Vol 8 (3) ◽  
pp. 385-406 ◽  
Author(s):  
Brett Fiebiger

As is well known, the closure of the canonical Neo-Kaleckian model is an endogenous rate of capacity utilisation. To allay concerns of Harrodian instability one response has been to endogenise the normal rate to effective demand pressures. Recent contributions have stressed microfoundations for an adjustment in the normal rate towards the actual rate. The new approach focuses on shiftwork and redefines capacity utilisation as the average workweek of capital. This paper examines whether the new concept of capacity utilisation can provide a firmer basis for endogeneity in the normal rate. It argues that the assumption of variability in the normal shift system cannot be generalised across manufacturing industries, while the potential relevance for non-manufacturing industries is unknown. Another concern is that long-run trends in the average workweek of capital and aggregate demand do not coincide. The paper also finds that the long-run trend in the US Federal Reserve's index of capacity utilisation for the manufacturing sector is not flat as frequently claimed. Instead, there is a downward trend from the mid 1960s, which matches the slowdown in aggregate demand.


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