In this work we study the granular origins of business cycles and their possible underlying drivers. As shown by Gabaix (2011), the skewed nature of firm size distributions implies that idiosyncratic (and independent) firm-level shocks may account for a significant portion of aggregate...

Fiscal policy has become quite controversial in the post-Keynesian era, the debate over the Obama stimulus package being a contentious recent example. Some pundits go so far as to take the position that macroeconomic theory has failed to meaningfully progress in terms of providing useful...

The traditional assumption of constant factor shares (Bowley’s Law) may be misleading, for factor shares do vary in both the short run and the long run. The present chapter looks at short-run factor share movements, asking how they relate to the business cycle. Theoretical arguments differ...

Migrants' remittances are an essential source of income in many developing countries. In this article, we build a post-Keynesian stock–flow consistent model adapted to Moldova, one of the top recipients of remittances. In addition to increasing household consumption, migrants' transfers have...

This paper presents a dynamic, non-linear, stock–flow consistent aggregate Keynesian model with a banking sector, a household sector, a government sector, and a real-estate sector, to study the interactions between booms and busts in the real-estate sector and the macroeconomy. Using this...

Structuralist and post Keynesian models differ in their assumptions about firms' investment behavior and pricing/output decisions. This paper compares three benchmark models: Kaleckian, Robinsonian and Kaldorian. We analyze the implications of these models for the steady growth path and the...

The interaction between income distribution, accumulation, employment and the utilization of capital is central to macroeconomic models in the 'heterodox' tradition. This paper examines the stylized pattern of these variables using US data for the period after 1948. We look at the trends and...

This study aims to analyze the structural traits of the US (1990-2011) and Turkish economy (2000-2012) with regards to hysteresis (persistent unemployment) in labor markets. Under the New Keynesian framework two major lines of thought explain unemployment patterns: Non Accelerating Inflation...

Goodwin cycles result from the dynamic interaction between a profit-led demand regime and a reserve army effect in income distribution. The paper proposes the concept of a pseudo-Goodwin cycle. We define this as a counter-clockwise movement in output and wage share space which is not generated...

The study aims to analyze US economy for the term 1990-2009 with emphasis on price formation and provide evidence on the mechanism through which business cycles occur. According to New Keynesian thinking major structural trait of the economy is non-clearing markets under imperfect competition...