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Effective Demand in the Recent Evolution of the US Economy
[Demande Effective dans l'évolution récente de l'économie des Etats-Unis]

Author

Listed:
  • Julio López Gallardo

    (UNAM - Universidad Nacional Autónoma de México = National Autonomous University of Mexico)

  • Luis Antonio Reyes Ortiz

    (AFD - Agence française de développement)

Abstract

This paper puts forward the notion that the recent evolution of the US economy can be fully explained by demand-side variables. We empirically test some hypotheses about the role of fiscal and monetary policies and of income distribution in shaping effective demand. Using a rigorous and demanding econometric analysis, we estimate a macroeconomic model, test the validity of its probability and statistical underlying assumptions, and conclude that fiscal and monetary variables, together with the wage share, do in fact influence effective demand and thus shape the overall evolution of the US economy.

Suggested Citation

  • Julio López Gallardo & Luis Antonio Reyes Ortiz, 2014. "Effective Demand in the Recent Evolution of the US Economy [Demande Effective dans l'évolution récente de l'économie des Etats-Unis]," Post-Print halshs-01907268, HAL.
    • Handle: RePEc:hal:journl:halshs-01907268
    DOI: 10.2753/IJP0891-1916420105
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01907268
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    References listed on IDEAS

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