Search

As the population rapidly ages, Housing Reverse Mortgages (HRMs) have emerged as a valuable addition to the multilevel pension insurance system, helping to alleviate the pressure on pension financing. However, the HRM market in China faces challenges due to the limited financial literacy among middle‐aged and elderly residents; there is a "cognitive bias" toward understanding the mechanisms and benefits of HRMs leading to "insufficient effective demand." This study empirically investigates the likelihood of changing the "demand willingness" for an HRM through a scenario‐simulation experiment focused on HRM‐related information disclosure. The findings include: (1) Up to 46.78% of the subjects' attitudes toward adopting HRMs shifted from "unwilling" to "willing" after receiving disclosed information, indicating that cognitive bias significantly impacts the insufficient effective demand for these housing products. The information disclosure experiment can correct the inadequate financial literacy to a certain extent, thereby significantly enhancing the potential demand willingness. (2) After the experiment, subjects with strong motives to bequeath their property to family members (referred to as "strong bequest motives") significantly changed their willingness to adopt HRMs ("demand willingness"). This suggests that a clear, comprehensive promotional strategy can better align middle‐aged and elderly residents' perceptions of the role of HRMs in protecting inheritances, reducing the impact of bequest‐related considerations on their financial decisions. (3) Participants initially exhibiting lower financial literacy also demonstrated notable shifts in their demand willingness postexperiment. Access to easily understood, high‐quality information appears to help older individuals recognize the potential benefits of HRMs, mitigating the negative effects of cognitive limitations on their decision‐making. These findings highlight the importance of enhancing financial literacy and promoting a better understanding of HRMs among middle‐aged and elderly individuals, which may effectively manage the challenges associated with an aging population and the pressures on pension financing. [ABSTRACT FROM AUTHOR]

Recent empirical research has highlighted the role played by public investment in stimulating economic activity, while addressing a variety of systemic challenges such as climate change and supply chain resilience. However, theoretical considerations regarding the capacity-building effect of public capital formation have been often overlooked in the demand-led growth literature. The paper addresses this gap by introducing a public investment component within a supermultiplier model, treating government investment and consumption spending as two separate components of autonomous demand, growing at different rates over the long run. The model is proven to be stable as long as the non-capacity-creating component of demand grows faster than public investment. Even though the latter does not have long-term growth effects in the steady state, it does affect economic activity during the traverse. The model is then calibrated and simulated, showing that movements between steady-state positions are extremely long-lasting, thus reinforcing the idea that supermultiplier models are better suited to describe out-of-equilibrium dynamics, while pointing out the potential role of public investment in shaping macroeconomic outcomes in the short, medium, and long run. [ABSTRACT FROM AUTHOR]

The article provides a critical analysis of the Development Strategy for the Production of Organic Products in the Russian Federation until 2030, and examines the problems and prospects for expanding the domestic market and export of organic products. It is shown that the potential for growth in organic production in the Russian Federation, outlined in the Strategy, exists, but its implementation requires an intensification of policies to support the sector (including subsidies and government procurement of organic products). [ABSTRACT FROM AUTHOR]

Copyright of Revista Foco (Interdisciplinary Studies Journal) is the property of Revista Foco and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Moneta e Credito is the property of Associazione Economia Civile and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In recent years, Supermultiplier models have attracted rising attention, highlighting the role of autonomous components of demand in shaping the long-run growth path of the economy. This paper aims to empirically test the implications of this approach in selected European economies, grouped according to the literature on welfare model classification. First, we outline the short-run adjustments and long-run relations between autonomous demand growth and output by estimating a vector error-correction model (VECM). Second, we assess if a causal relationship between the variables can be identified by estimating a structural model and computing the orthogonalized impulse response functions, focusing in particular on the effects of a demand shock on output. The empirical results confirm a positive and significant relation between autonomous demand and output in the long run for all countries considered. Moreover, we find that the causal direction runs from the former to the latter, corroborating the idea that autonomous demand shocks permanently affect the growth path of the economies under scrutiny. [ABSTRACT FROM AUTHOR]

Obiettivo di questo saggio è mostrare come la crescita sostenuta del tasso di occupazione, che dovrebbe essere assunta come variabile strategica della politica economica, dipenda – per dati tassi di crescita del prodotto e della popolazione in età lavorativa – da due condizioni: (a) permettere che le ore di lavoro diminuiscano allo stesso ritmo con cui cresce la produttività oraria del lavoro; (b) permettere che i salari orari reali aumentino al ritmo con cui cresce la produttività oraria del lavoro. Il saggio evidenzia che le due condizioni enunciate ed esaminate analiticamente sono da considerarsi come condizioni necessarie affinché l’espansione della domanda e della produzione esprima il massimo potenziale di crescita dell’occupazione a quote distributive invariate. Una volta soddisfatte entrambe, i benefici dell’aumento della produttività oraria del lavoro si trasferiscono ai salari sotto forma di un più alto tasso di crescita dell’occupazione. Il quadro analitico sviluppato nel saggio viene utilizzato per una prima valutazione dell’evidenza empirica.

ABSTRACT This paper attempts to resituate the theory of effective demand within a dynamic nonequilibrium context. Existing theories of effective demand, which derive from the works of Keynes and Kalecki, are generally posed in state equilibrium terms. That is to say, they serve to define a given level of output which corresponds to the equilibrium point between aggregate demand and supply. We propose to generalize this analysis in three ways. First, we will extend the analysis to encompass a dynamic (i.e. moving) short-run path of output, rather than a merely static level. Second, we will show that his dynamic short-run path need not imply an equilibrium analysis, since it can arise from either stochastically sustained cycles or deterministic limit cycles. And third, we will prove that the preceding generalization of the theory of effective demand will allow us to solve a long-standing problem in growth theory: namely the puzzle surrounding the apparently intractable instability of warranted growth. We will show that the actual path of growth does indeed gravitate around the warranted path in a cyclical sense.

The COVID-19 pandemic in 2020 enhanced the need for commercial health insurance to address the sudden and overwhelming healthcare costs faced by families. This also led to an increase in the demand for health insurance services requiring insurance companies to innovate and develop suitable services. However, in the context of China, despite the huge potential for growth, health insurance market faces numerous challenges such as inadequate availability of tailored services, educational issues, income limitations, and emphasis on social insurance. To examine the issues and consider areas for improvements, this research investigated the impacts and effects of commercial health insurance from a macro perspective and considered potential recommendations to enhance the effective demand. This paper performed an empirical investigation by using the short panel data for regression analysis. The data was collected over ten years (2010 to 2019) involving 31 provinces in China to establish a fixed effect model. It employed FE and FGLS method to compare and analyze the impact of 9 factors while the health insurance premium was set as the dependent variable. Results showed that domestic economic development led to increasing residents' wealth and consumption levels has increased, including healthcare investments. Elevating the awareness of people through education can promote the development of the commercial health insurance demand, but the influence of urbanization level and the aging of the population remain to be demonstrated.

This paper tries to highlight some essential elements that emerge from Luigi Pasinetti’s work. Much of the research project that Pasinetti developed, especially in the 1981 book, was already present in nuce in the 1974 collection of essays. Here the theory of effective demand is presented for the first time, emphasizing the essential differences between sequential and simultaneous economic reasoning. The relevance of structural change is already apparent, and will be explored in a multisectoral scheme only in the 1981 book. The main insights that can be drawn from Pasinetti’s reflections on open economic systems and his ethical stance suggest that ownership of the means of production not only confers rights but it also imposes responsibilities on the community.

Copyright of Revista Foco (Interdisciplinary Studies Journal) is the property of Revista Foco and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article examines Chapter 5 'Effective Demand and Employment' in Post-Keynesian Economics: New Foundations by Marc Lavoie. This chapter covers one of the most distinctive contributions of the post-Keynesians, and one of its most profound insights. Analysis of effective demand and employment is a crucial and distinct foundation of post-Keynesian economics. Identifying the determinants of the level of employment and output represent one of the most significant contributions of post-Keynesian analysis. This is in total contrast to mainstream theory, according to which the level of output and employment are determined in the labour market, with labour seen as just another commodity, and the wage rate playing the role of the price equating supply and demand for labour. For post-Keynesians, the main determinant of the level of output and employment is the level of effective demand rather than the wage rate. Their views on the labour markets, taking into account segmented labour markets and efficiency wages, are considered. The determinants of profits and the profit share play important roles in the determination of employment and output. It is argued that fiscal policy plays a vital role in economic stabilisation, and that the typical arguments regarding its limitations are incorrect. [ABSTRACT FROM AUTHOR]

The paper provides an analytical solution to the differential equation that regulates the motion of the neo-Kaleckian model in the short run. After presenting a simple open economy neo-Kaleckian model with government activity, the paper analytically derives an expression for the time of adjustment, defined as the time required for the system to make a k percent adjustment from one steady-state to another. The solution shows that there is an inverse relationship between the time of adjustment and (i) the strength of the Keynesian stability condition; (ii) the behavior of entrepreneurs underlying their decisions to more rapidly/slowly respond to changes in goods market conditions. Last, the model is calibrated for the US, showing that the vicinity of the new equilibrium is reached after a period of about 5 quarters under a baseline calibration. By formally analyzing the out-of-equilibrium trajectory of the neo-Kaleckian model, this contribution moves away from the method of comparative dynamics and provides a historical-time representation of the model's traverse. [ABSTRACT FROM AUTHOR]

In a market economy, the optimal supply of food to the population depends entirely on the development of the food market. To establish indicators of rational consumption, it is important to determine the capacity and saturation of the food market. The purpose of this study was to highlight the current proportions of supply and demand in the Ukrainian food market, establish the correspondence of the capacity and saturation of the food market to rational consumption parameters. The study used dialectical method of cognition of market processes and a systematic approach, analytical generalizations, statistical comparison, constructive-calculation, tabular, and abstract-logical method. The food market is recognized as aggregative, as it includes several interconnected markets for crop production, livestock production, and industrial processing. The study investigated the specific features of the formation of demand for food with low purchasing power of the population. The market capacity was established – standard with minimum and rational consumption standards and real. The latter was almost 30% lower than the calculated one based on rational norms, which indicates additional opportunities to replenish the income of the agricultural sector. It was found that even with an increase in effective demand of the population, the improvement in consumption is levelled due to rising food prices. A prominent level of self-sufficiency of the country in food products (excluding fish and fish products) was established, and a considerable saturation of the market with essential products – potatoes, vegetables, eggs, butter, and bread. The study results should be used in the formation of a target program for the development of the food market for a long-term period aimed primarily at rational provision of food products to the population of Ukraine

In this study, we present an empirical investigation into demand and distribution dynamics using structural vector autoregression analysis for Turkey between the period 1970-2017. The theoretical analysis is based on a Kaleckian dynamic macro model where distributive shares are determined endogenously by introducing Rowthorn’s conflicting claims on income by workers and firms and labor productivity is allowed to vary with the level of capacity utilization due to economies of scale due to Kaldor–Verdoorn effects and wage-push effects according to Marx. Our findings indicate that increases in wage share lead to an increase in accumulation and growth which suggests wage-led effective demand, while distributive dynamics demonstrate profit-squeeze results, at least in the short run. Moreover, the empirical model confirms most of the typical Kaleckian results. [ABSTRACT FROM AUTHOR]

• Economic growth is driven by non-capacity-generating autonomous demand components. • An autonomous component can be exogenous or endogenous. • The growth rates of autonomous components can endogenously adjust to each other in the long run. • Supermultiplier models are consistent with path dependency. According to supermultiplier models, economic dynamics are driven by the dynamics of non-capacity-generating autonomous demand components. Since the literature suggests several candidates for these components (government expenditures, credit-financed consumption, private residential investments, etc.), it is necessary to analyze how two (or more) autonomous components can coexist, which is the purpose of the theoretical model, conceptual discussion and simulation exercises presented herein. Because no more than one component can remain exogenous in the long run, either the other component(s) must adjust endogenously, or all the components adjust to each other. In the latter case, the long-run growth rate becomes path dependent, a new finding in the literature on supermultiplier models. Furthermore, while the label 'autonomous' becomes questionable for qualifying demand components, we argue that they should not be considered induced either, leading us to opt for the 'semi-autonomous' label suggested by Fiebiger (2018, 2020) and Fiebiger and Lavoie (2019). [ABSTRACT FROM AUTHOR]

Copyright of Efil Journal of Economic Research / Efil Ekonomi Araştırmaları Dergisi is the property of Efil Journal of Economic Research and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In recent years, Post‐Keynesian analysis has been characterized by a renewed interest in long‐run theories of growth and distribution. While many authors have focused on the convergence of demand‐led growth models to a fully adjusted equilibrium, relatively little attention has been given to the time required to reach this long‐run position. In order to fill the gap, this paper seeks to answer the question of when is the long run in demand‐led growth models. By making use of numerical integration, it analyses the time of adjustment from one steady‐state to the other in two well‐known demand‐led growth models: the Sraffian Supermultiplier and the fully adjusted version of the neo‐Kaleckian model. The results show that the adjustment period is generally beyond an economically meaningful time span, suggesting that researchers and policy makers ought to pay more attention to the models' predictions during the traverse rather than focusing on steady‐state positions. [ABSTRACT FROM AUTHOR]

The food market is recognized as aggregate because it consists of many interconnected markets for crop, livestock and industrial products. Problems of development of the food market of Ukraine, in particular features of formation of demand at low purchasing power of the population are investigated. The aim of the study is to reveal the features of the formation of effective demand for food products and determine the optimal level of wages of Ukrainians to achieve the consumption of the basic set of food products at the level of established rational norms. The research used the information database of the Ministry of Agrarian Policy and Food of Ukraine, the State Statistics Service of Ukraine, the Food and Agriculture Organization of the United Nations and information and analytical material on retail prices of the Ukrainian Research Institute of Agricultural Productivity. The conducted studies are based on the Guidelines for expanding the capacity of the domestic market of agricultural products and food, developed at the National Research Center "Institute of Agrarian Economics". The methodology of the study is structured as follows: 1. Determination of indicators of price and physical affordability of food (absolute and relative indicators comparison, price index formula) 2. Calculation of actual and total food costs (constructive-calculation method) 3. Calculation of regulatory (potential) and total (actual) capacity of the food market of Ukraine (potential and actual calculation) 4. Calculation of the amount of necessary wages of Ukrainians to ensure food consumption at the level of rational norms (methods of determining the amount of wages to ensure food consumption at the level of rational norms). The normative and actual capacity of the domestic food market at the minimum and rational norms of consumption is established. Calculations have shown that the actual capacity of the domestic food market is almost 30% lower than calculated on the basis of rational norms, which indicates additional opportunities to replenish the income of the agricultural sector. It was found that even with increasing effective demand of the population, the improvement in consumption is offset by rising food prices. Consumption of the population group with almost three times higher total incomes compared to the group with the lowest material security is much better in terms of quantity and quality of food. The level of consumption is elastic relative to effective demand only for lower income groups. The level of wages of Ukrainians under the conditions, at which the level of consumption of basic foodstuffs corresponds to rational norms, is determined. It is determined that in 2021 the salary level should be at least 1,132 euros per person per month, it is three times more than the actual average value in 2020 - 362 euros. It is proved that the destructive impact of price dynamics on the food market of Ukraine contributes to a decrease in the level of consumption. Given the increase in inflation for most food products and a slight government increase in the minimum wage, in the near future changes in the structure of the "consumer basket" of the population of Ukraine are not expected. [ABSTRACT FROM AUTHOR]

Copyright of Moneta e Credito is the property of Associazione Economia Civile and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Garegnani è stato una figura di primo piano nel contesto italiano e internazionale, e la sua attività di ricerca sempre connotata da un forte impegno intellettuale e civile. Nel saggio vengono enucleate le sue principali linee di ricerca concernenti la critica alla teoria marginalista, la ripresa dell’impostazione classica del sovrappiù, e il ruolo della domanda effettiva, i contributi sia metodologici che teorici, i punti di convergenza e di tensione con la scuola postkeynesiana in senso lato.

The aim of this paper is to propose the rate of productive capacity utilization as the economic policy target to fight unemployment. The idea behind this proposal is aimed at re-installing the management of effective demand as the main tool to reduce unemployment. This proposal attempts to replace the dominant theoretical framework, based on the neo-Keynesian labor market, which imposes inflation as the main restriction to reduce unemployment. We asses our proposal using data of six economies and several econometric techniques. The results indicate that the percentage of productive capacity utilization can indeed be a good substitute of the rate of unemployment. Moreover, according to the results of our panel data estimations, we identify that effective demand variables, like capital accumulation, affect productive capacity. [ABSTRACT FROM AUTHOR]

This paper presents a novel empirical investigation into demand and distribution dynamics using a heterogeneous panel structural vector autoregression model for a panel of 10 emerging economies during the 1970–2017 period. Following the Kaleckian tradition, the theoretical analysis is based on a dynamic macro model where distributive shares and labor productivity are determined endogenously by introducing conflicting‐claims theory of inflation and Kaldor–Verdoorn effects. The paper indicates profit‐led demand regime only in the short run and profit‐squeeze effects when allowing for the contemporaneous effect of labor share on capacity utilization and capital accumulation. However, after incorporating the contemporaneous effect of demand on labor share and thus controlling for the short‐term effect of pro‐cyclical labor productivity on labor share, the results provide evidence for wage‐led demand and wage‐squeeze effects. These results underline how the importance of addressing endogeneity issues when estimating demand and distribution regimes and how different assumptions about the interactions among demand, distribution, and labor productivity result in diverse findings. [ABSTRACT FROM AUTHOR]

This study constructs a multi‐country, multi‐commodity Ricardian trade model with link commodities, defined as commodities commonly produced in more than one country, and Keynesian unemployment arising from deficient effective demand. Given production techniques, available labour, and demand in each country, the model determines patterns of international division of labour, commodity prices, wage rates, outputs, and employment in each country. The main results indicate that demand changes effectuate quantity adjustments without price changes, each country must expand domestic demand to increase domestic employment, and each country must raise the labour productivity of link commodities to increase relative domestic wage rates. [ABSTRACT FROM AUTHOR]

The article substantiates the need for marketing management of economic and environmental safety of the country's consumer market. The main task of providing the population with consumer goods should be solved by achieving commodity self-sufficiency and preserving the economic and environmental safety of goods. At the same time, the primary task of marketing impact is to study the needs of the market, effective demand and link them with ensuring economic and environmental safety. [ABSTRACT FROM AUTHOR]

We study the residential investment-economic activity nexus in the United States during the period 1960–2020. We find evidence of symmetric and asymmetric frequency-domain Granger causality running unidirectionally from residential investment (RES) to output. This unidirectional causal relationship is both permanent and transitory: transitory shocks in RES have transitory effects on GDP, while permanent shocks in RES have permanent effects on GDP. Our results validate the hypothesis of Fiebiger [2018. 'Semi-Autonomous Household Expenditures as the Causa Causans of Postwar US Business Cycles: The Stability and Instability of Luxemburg-Type External Markets.' Cambridge Journal of Economics 42 (1): 155–175] and Fiebiger and Lavoie [2019. 'Trend and Business Cycles with External Markets: Non-Capacity Generating Semi-Autonomous Expenditures and Effective Demand.' Metroeconomica 70 (2): 247–262], who state that housing investment in the US can be analogous to a Luxemburg-Kalecki external market. Our findings can also be read through the lenses of the recent autonomous demand-led growth literature. In particular, we single out a specific component of autonomous demand and describe its prominent role in the US variety of capitalism. Thus, we conclude that residential investment, despite constituting a small overall share of GDP, is not only the cycle but is also the trend of the US economy. [ABSTRACT FROM AUTHOR]

Copyright of Interventions Économiques is the property of Association d'Economie Politique and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Motivated by the prevailing severe situation in India, we extend the SIR(S) model of infectious diseases to incorporate demand dynamics and its interaction with COVID‐19 spread. We argue that, on one hand, the spread of COVID‐19 creates panic among consumers and firms and negatively affects economic activity. On the other hand, economic activity intensifies the spread of the infection. Initially assuming that recovered individuals do not develop antibodies and become susceptible again, we capture the interaction between economic activity and the spread of the disease in a two‐dimensional dynamical system. We show that a large fiscal expansion combined with measures to boost community health and improve the health sector's capacity to provide critical care can simultaneously improve the economy and control the spread of the disease. Finally, assuming that only a fraction of recovered individuals become susceptible to contracting the diseases again, we obtain richer dynamics in a three‐dimensional dynamical system. This paper also highlights the important role of infection rates and the recovery rate in determining the uniqueness and the stability properties of steady state. [ABSTRACT FROM AUTHOR]

Copyright of Panorama Económico is the property of Universidad de Cartagena and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The paper develops a critique of and a (partial) solution to Say's Law Marxism, defined as the employment of Say's Law within the Marxist framework. The critique is based on the notion that expectations and effective demand are constitutive of labor values and prices of production. Socially necessary labor cannot be determined solely from the supply side. The (partial) solution to Say's Law Marxism rests on the development of an evolutionary model that integrates the principle of effective demand in the short run and the formation of prices of production in the long run. The equalization of profit rates in the long run and the formation of prices of production as attractors of market prices depend upon the realization of profits in the short run and, therefore, are subject to the principle of effective demand. The model employs replicator dynamics from evolutionary game theory to formalize competition at the firm level. The replicator equations also formalize the adoption of new production techniques and the nonlinear feedback effects between individual decisions and unintended macroeconomic outcomes. • Model integrates the principle of effective demand and prices of production • Expected demand determines the realization of surplus value and profit • Effective demand determines labor values and long-run market prices • Model draws from Marx, Kalecki, Keynes, and evolutionary game theory • Replicator equations formalize competition, capital mobility, and technical change [ABSTRACT FROM AUTHOR]