IDEAS home Printed from https://ideas.repec.org/a/taf/revpoe/v35y2023i2p454-475.html
   My bibliography  Save this article

Stock-Flow Consistent Model with Repayment of Bank Loans Used to Finance Past Investments

Author

Listed:
  • Edouard Cottin-Euziol
  • Nicolas Piluso

Abstract

Stock-flow consistent modelling (SFC) is currently one of the most active fields of research in post-Keynesian macroeconomics. SFC models make it possible to study the dynamics of a monetary economy of production within a consistent accounting framework. However, with some rare exceptions, SFC models do not take into account the repayment of bank loans used to finance business investments. It is assumed that these investments are financed by perpetual loans or by constant turnover. In this article, we reject this assumption and build a model based on recent studies, in which firms repay part of their past debt in each period. We then study the dynamics of this model. The results obtained indicate that the dynamics of an SFC model is significantly affected by taking these repayments into account.

Suggested Citation

  • Edouard Cottin-Euziol & Nicolas Piluso, 2023. "Stock-Flow Consistent Model with Repayment of Bank Loans Used to Finance Past Investments," Review of Political Economy, Taylor & Francis Journals, vol. 35(2), pages 454-475, April.
    • Handle: RePEc:taf:revpoe:v:35:y:2023:i:2:p:454-475
    DOI: 10.1080/09538259.2021.1947659
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09538259.2021.1947659
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09538259.2021.1947659?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 look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

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


    Cited by:

    1. Edouard Cottin-Euziol & Nicolas Piluso, 2024. "Refutations of Say’s Law and Dynamics of a Monetary Economy of Production," Review of Radical Political Economics, Union for Radical Political Economics, vol. 56(1), pages 101-115, March.

    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:35:y:2023:i:2:p:454-475. 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: 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.