IDEAS home Printed from https://ideas.repec.org/a/elg/rokejn/v8y2020i3p454-466.html
   My bibliography  Save this article

Investment rate, growth, and the accelerator effect in the supermultiplier model: the case of Brazil

Author

Listed:
  • Julia de Medeiros Braga

    (Associate Professor, Fluminense Federal University (UFF), Niterói, Brazil)

Abstract

This paper investigates the role of demand in the productive investment evolution in the Brazilian economy. First, it assesses the long-run relationship between the investment rate and GDP growth, taking annual data from 1962 to 2015. The paper then constructs a ‘final demand’ index and estimates its impact on the productive investment growth rate, taking quarterly data from 1996Q1 to 2017Q2, highlighting a shift in the aftermath of the 2008 global financial crisis. The results support two hypotheses of the supermultiplier model of Freitas and Serrano (2015) and Serrano et al. (2017) for the Brazilian economy: (i) non-capacity-creating expenditures lead productive investment; and (ii) there is a very slow adjustment of the investment rate to demand growth, as described by the flexible accelerator process.

Suggested Citation

  • Julia de Medeiros Braga, 2020. "Investment rate, growth, and the accelerator effect in the supermultiplier model: the case of Brazil," Review of Keynesian Economics, Edward Elgar Publishing, vol. 8(3), pages 454-466, July.
    • Handle: RePEc:elg:rokejn:v:8:y:2020:i:3:p454-466
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/journals/roke/8-3/roke.2020.03.08.xml
    Download Restriction: Restricted Access
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. José A. Pérez‐Montiel & Carles Manera, 2022. "Is autonomous demand really autonomous in the United States? An asymmetric frequency‐domain Granger causality approach," Metroeconomica, Wiley Blackwell, vol. 73(1), pages 78-92, February.
    2. Stephen Thompson, 2022. "“The total movement of this disorder is its order”: Investment and utilization dynamics in long‐run disequilibrium," Metroeconomica, Wiley Blackwell, vol. 73(2), pages 638-682, May.
    3. Dvoskin, Ariel & Torchinsky Landau, Matías, 2023. "Income distribution and economic cycles in an open-economy supermultiplier model," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 273-291.
    4. Guilherme Haluska & Julia Braga & Ricardo Summa, 2021. "Growth, investment share and the stability of the Sraffian Supermultiplier model in the U.S. economy (1985–2017)," Metroeconomica, Wiley Blackwell, vol. 72(2), pages 345-364, May.
    5. Barbieri Góes, Maria Cristina & Deleidi, Matteo, 2022. "Output determination and autonomous demand multipliers: An empirical investigation for the US economy," Economic Modelling, Elsevier, vol. 116(C).

    More about this item

    Keywords

    supermultiplier; demand-led growth models; final demand; flexible accelerator; Brazilian economy;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:rokejn:v:8:y:2020:i:3:p454-466. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Phillip Thompson (email available below). General contact details of provider: http://www.elgaronline.com/roke .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.