The determination of investment in the monetary production economy: a theory and its empirical application in the Post Keynesian tradition.

This paper deals with the determination of investment in the monetary production economy. We test the empirical validity of a model based on Davidson and Minsky's examples in the Post Keynesian tradition. Based on Davidson and Minsky, we construct a simple model of the endogenous determination of investment. An empirical model is tested based on the spirit of the Davidson—Minsky approach for Japan. The results suggest that the Post Keynesian approach has an interpretative value both theoretically and empirically. [ABSTRACT FROM AUTHOR]