Growth, investment share and the stability of the Sraffian Supermultiplier model in the U.S. economy (1985-2017)

摘要

In this paper, we empirically test the central hypothesis of the Sraffian Supermultiplier model (SSM)-that the growth of demand induces the share of capacity creating investment in output-for the U.S. economy from 1985 to 2017. Our results show that movements in the output growth rate cause the induced investment ratio, indicating that there is a tendency for utilization to converge slowly toward some exogenous normal level. And this together with other estimated parameters of the model suggest that the SSM adjustment mechanism has been dynamically stable for the U.S. data in the period under analysis.