Macroeconomic concepts and analytical tools

2019 ◽  
pp. 1-10
Author(s):  
Kazimierz Łaski
Keyword(s):  
National Income ◽  
Total Output ◽  
Balance Sheets ◽  
Capitalist Economy ◽  
Government Sector ◽  
Heterogeneous Goods ◽  
Stock Flow ◽  
Analytical Tools ◽  
Financial Balance ◽  
Flow Consistency

The basic concepts of national income are explained, centered around the question of the measurement of the total output of heterogeneous goods in a capitalist economy, showing the effects of changes in the prices used to add up those goods. The capitalist economy consists of a private sector and a government sector. The balances between income and expenditure in these sectors are then linked to their supporting financial and non-financial balance sheets of assets and liabilities. The basic principles of stock-flow consistency between sectors of the economy are shown using sectoral balances.

The Impact of Cotton Land Distribution on the Antebellum Economy

1971 ◽  
Vol 31 (4) ◽  
pp. 917-937 ◽  
Author(s):  
Peter Passell
Keyword(s):  
National Income ◽  
Geographic Location ◽  
Political Issue ◽  
Land Distribution ◽  
Distribution Of Wealth ◽  
Private Interests ◽  
Perceived Effects ◽  
The American South ◽  
Analytical Tools ◽  
The Impact

Much of the federally owned public lands in the American South to the west of the Appalachians was sold to private interests between 1820 and 1860. Land sales' policy remained a great political issue during the nineteenth century because of its perceived effects on the distribution of wealth, sectoral economic growth, and the geographic location of political power. In this essay we consider the marginal impact of Southern land sales on national income. Like all models, our model is only as good as its underlying assumptions. Our aim is less to provide the last word on an important historical issue than to place the problem in a context in which analytical tools can be employed.

scholarly journals On the design of empirical stock–flow consistent models

2019 ◽  
Vol 16 (1) ◽  
pp. 134-158
Author(s):  
Gennaro Zezza ◽  
Francesco Zezza
Keyword(s):  
Research Question ◽  
Careful Analysis ◽  
Relevant Research ◽  
Accounting Data ◽  
Balance Sheets ◽  
National Accounting ◽  
Flow Of Funds ◽  
Accounting Rules ◽  
Stock Flow ◽  
Stock Flow Consistent Models

While the literature on theoretical macroeconomic models adopting the stock–flow consistent (SFC) approach is flourishing, few contributions cover the methodology for building an SFC empirical model for a whole country. Most contributions simply try to feed national accounting data into a theoretical model inspired by Godley/Lavoie (2007), albeit with different degrees of complexity. In this paper we argue instead that the structure of an empirical SFC model should start from a careful analysis of the specificities of a country's sectoral balance sheets and flow-of-funds data, compared to the relevant research question to be addressed. We illustrate our arguments with examples for Greece and Italy. We also provide some suggestions on how to consistently use the financial and non-financial accounts of institutional sectors, showing the link between SFC accounting structures and national accounting rules.

Profits and GDP in the basic model

2019 ◽  
pp. 32-53
Author(s):  
Kazimierz Łaski
Keyword(s):  
Labor Productivity ◽  
Total Output ◽  
Capitalist Economy ◽  
Basic Model ◽  
Consumption Goods ◽  
The Stability ◽  
Two Sectors ◽  
Investment Multiplier ◽  
Multiplier Process

In the basic model it is assumed that the economy is closed and there is no government. In this situation, with two sectors producing respectively investment and consumption goods, total output and employment are determined by investment through the Keynesian investment multiplier. This result obtains because the capitalist economy is demand-constrained. By contrast, the centrally planned socialist economies were supply-constrained. In the capitalist economy the multiplier process ensures that investment finances itself through providing exactly the same amount of saving as investment in any given period. However, the condition for the stability of this result is the rise in wages with labor productivity.

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