Steindlian models of growth and stagnation

Authors

Peter Flaschel
Peter Skott, University of Massachusetts - Amherst

Working Paper Number

2004-11

Publication Date

2004

Abstract

Following an analysis of the relation between a standard Steindlian model of stagnation and Steindl’s own analysis, we modify the standard model by introducing endogenous changes in the markup and a reformulation of the investment function. These extensions, which address significant weaknesses of the standard model, find support in Steindl’s writing and leave intact some of Steindl’s key results. In a further extension, we add a labour market and analyse the stabilizing influence of a Marxian reserve-army mechanism. The implications of the extended model for the effects of increased oligopolization are largely in line with Steindl’s predictions.

DOI

https://doi.org/10.7275/1069224

Recommended Citation

Flaschel, Peter and Skott, Peter, "Steindlian models of growth and stagnation" (2004). Economics Department Working Paper Series. 78.
https://doi.org/10.7275/1069224