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Sustainability in a post-Keynesian growth model for an open economy
- Source :
- Ecological Economics. 126:14-22
- Publication Year :
- 2016
- Publisher :
- Elsevier BV, 2016.
-
Abstract
- The paper expands the BOP-constraint growth model and Kaldorian regimes (productivity and demand regimes) in order to include some of the concerns raised by ecological economics in post-Keynesian models for open economies. The demand regime is modified by taking into account Porter's hypothesis, which suggests that environmental innovations, spurred by environmental policies, can foster competitiveness. As a result, the equilibrium BOP-constrained rate of growth increases, leading to a different version of Thirlwall's Law, which opens room for analyzing the impact of environmental innovations on convergence between developing and developed economies. The productivity regime in turn considers the growth and employment implications of innovations in labor productivity (standard innovations) and environmental efficiency (environmental innovations). It is argued that the fiscal policy and composition of public expenditure matter for long run growth, employment and sustainability.
- Subjects :
- Macroeconomics
Economics and Econometrics
Ecological economics
business.industry
05 social sciences
Public expenditure
Convergence (economics)
International trade
Post-Keynesian economics
010501 environmental sciences
01 natural sciences
Fiscal policy
0502 economics and business
Sustainability
Economics
Open economy
050207 economics
business
Productivity
0105 earth and related environmental sciences
General Environmental Science
Subjects
Details
- ISSN :
- 09218009
- Volume :
- 126
- Database :
- OpenAIRE
- Journal :
- Ecological Economics
- Accession number :
- edsair.doi...........4809755da2c2691789e26ca61aca8a44