IDEAS home Printed from https://ideas.repec.org/a/taf/revpoe/v29y2017i1p148-156.html
   My bibliography  Save this article

Growth, Normal Capacity Utilization and the Long-Run Saving Ratio: A Comment

Author

Listed:
  • Davide Gualerzi

Abstract

In a recent paper Attilio Trezzini presents an explanation of the saving ratio that does not rely on normal capacity utilization positions. Trezzini instead focuses on the fluctuations of consumption and investment. But that very focus, I argue, requires a different kind of approach. Once the traditional theory of saving is discarded, the ‘indeterminacy’ of the saving ratio opens the way to an analysis of the evolution of consumption, and of how that evolution affects aggregate demand. The generation and evolution of autonomous demand are matters of obvious relevance to the classical Keynesian approach to the analysis of growth. The present comment takes James Duesenberry’s criticism of demand theory as the starting point for an examination of the evolving standard of consumption and autonomous (‘innovative’) investment, therefore addressing directly the investment–consumption relationship. There are of course a number of complicated questions involved and they have not yet been satisfactorily analysed. They are part of the necessary task of articulating a theory of consumption consistent with demand-led growth and forward-looking investment decisions.

Suggested Citation

  • Davide Gualerzi, 2017. "Growth, Normal Capacity Utilization and the Long-Run Saving Ratio: A Comment," Review of Political Economy, Taylor & Francis Journals, vol. 29(1), pages 148-156, January.
  • Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:148-156
    DOI: 10.1080/09538259.2016.1243689
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09538259.2016.1243689
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/09538259.2016.1243689?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Davide Gualerzi, 2001. "Consumption and Growth," Books, Edward Elgar Publishing, number 2433.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Davide Gualerzi & Edward Nell, 2010. "Transformational Growth in the 1990s: Government, Finance and High-tech," Review of Political Economy, Taylor & Francis Journals, vol. 22(1), pages 97-117.
    2. Saviotti, Pier Paolo & Pyka, Andreas, 2004. "Economic development, qualitative change and employment creation," Structural Change and Economic Dynamics, Elsevier, vol. 15(3), pages 265-287, September.
    3. Lavoie, Marc, 2004. "Post Keynesian consumer theory: Potential synergies with consumer research and economic psychology," Journal of Economic Psychology, Elsevier, vol. 25(5), pages 639-649, October.
    4. Davide Gualerzi, 2010. "The Paths of Transformational Growth," Chapters, in: Mark Setterfield (ed.), Handbook of Alternative Theories of Economic Growth, chapter 8, Edward Elgar Publishing.
    5. Silva, Ester G. & Teixeira, Aurora A.C., 2008. "Surveying structural change: Seminal contributions and a bibliometric account," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 273-300, December.
    6. Andreas Chai, 2018. "Household consumption patterns and the sectoral composition of growing economies: A review of the interlinkages," Discussion Papers in Economics economics:201802, Griffith University, Department of Accounting, Finance and Economics.
    7. Araujo, Ricardo Azevedo & Trigg, Andrew B., 2015. "A neo-Kaldorian approach to structural economic dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 33(C), pages 25-36.
    8. Francisco Fatás-Villafranca & Dulce Saura & Francisco Vazquez, 2009. "Diversity, persistence and chaos in consumption patterns," Journal of Bioeconomics, Springer, vol. 11(1), pages 43-63, April.
    9. Nayak, Purusottam & Mishra, SK, 2009. "Structural Change in Meghalaya: Theory and Evidence," MPRA Paper 15728, University Library of Munich, Germany.
    10. Matthew Smith, 2012. "Demand-led Growth Theory: A Historical Approach," Review of Political Economy, Taylor & Francis Journals, vol. 24(4), pages 543-573, October.
    11. Davide Gualerzi, 2012. "Towards a Theory of the Consumption--Growth Relationship," Review of Political Economy, Taylor & Francis Journals, vol. 24(1), pages 33-50, January.
    12. John A. Cotsomitis, 2014. "Demand-Side Characteristics of the Learning Economy: A Preliminary Assessment," Review of Political Economy, Taylor & Francis Journals, vol. 26(3), pages 449-473, July.
    13. Attilio Trezzini, 2011. "The Irreversibility of Consumption as a Source of Endogenous Demand-driven Economic Growth," Review of Political Economy, Taylor & Francis Journals, vol. 23(4), pages 537-556, October.
    14. Attilio Trezzini, 2017. "The Social Significance of Consumption and the Elasticity of Output to Demand in the Long Run: A Reply to Gualerzi," Review of Political Economy, Taylor & Francis Journals, vol. 29(1), pages 157-161, January.
    15. Davide Gualerzi, 2011. "Long-term Depression and New Markets: Economists and the 2008 Recession," Chapters, in: Óscar Dejuán & Eladio Febrero & Maria Cristina Marcuzzo (ed.), The First Great Recession of the 21st Century, chapter 12, Edward Elgar Publishing.

    More about this item

    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:taf:revpoe:v:29:y:2017:i:1:p:148-156. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRPE20 .

    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.