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Comment: The nature of the ADAS model based on the ISLM model.
- Source :
- Cambridge Journal of Economics; May2010, Vol. 34 Issue 3, p587-590, 4p
- Publication Year :
- 2010
-
Abstract
- Rao suggests that the Rowan demand curve does not exist but that result is obtained through treating the system as a simultaneous equation problem that will inevitably obtain the standard aggregate demand (AD) result. The Rowan procedure is a conditional function that makes planned AD conditional on planned aggregate supply (AS)—a quintessential Keynesian process. This results in an AS-dependent AD curve that is upward sloping. This system can be shown to be stable, have a firm connection to measures of national income accounting without dependence on notions of equilibrium and implications for econometric estimations. [ABSTRACT FROM PUBLISHER]
Details
- Language :
- English
- ISSN :
- 0309166X
- Volume :
- 34
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Cambridge Journal of Economics
- Publication Type :
- Academic Journal
- Accession number :
- 51492611
- Full Text :
- https://doi.org/10.1093/cje/bep052