This paper provides a theoretical and empirical reassessment of supermultiplier theory. First, we show that, as a result of the passive role it assigns to investment, the Sraffian supermultiplier (SSM) predicts that the rate of utilization leads the investment share in a dampened cycle or,...

The empirical literature on models of cyclical growth and distribution still lacks an explicit treatment of capital accumulation. Further, and from different theoretical perspectives, residential investment is seen as a critical driver of the business cycle. This paper addresses both issues....