Permanent Demand and Private Investment in the General theory: an empirical investigation

  • Jose A. Pérez Montiel
  • Carles Manera Erbina Universidad Islas Baleares

Palabras clave:

Permanent demand, Supermultiplier, Economic dynamics


We empirically test some Keynes’ (and post Keynesians’) assertions relative to the multiplier-accelerator principle. By means of the nonlinear causality test proposed by Diks and Wolski (2016), we conclude that in the United States domestic private investment is driven by permanent demand. We explain that this result is consistent with Keynes’s principle of effective demand in the long run. We hope this paper helps consolidating the potential consensus among Keynesian, Kaleckian and Sraffian economists initiated by the work of Allain (2015).


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Biografía del autor/a

Carles Manera Erbina, Universidad Islas Baleares
Catedrático de Historia Económica, departamento de Economía Aplicada


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Cómo citar
Pérez Montiel, J. A., & Manera Erbina, C. (2020). Permanent Demand and Private Investment in the General theory: an empirical investigation. Revista De Economía Mundial, (54).
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