Putting Austerity to Bed: Technical Progress,Aggregate Demand and the Supermultiplier |
| |
Authors: | Matteo Deleidi Mariana Mazzucato |
| |
Affiliation: | 1. Roma Tre University, Rome, Italy;2. University College London, London, UKm.deleidi@ucl.ac.uk matteo.deleidi@uniroma3.ithttps://orcid.org/0000-0001-6371-5255;4. University College London, London, UK |
| |
Abstract: | ABSTRACTThe paper investigates the determinants of private investment and economic growth from a theoretical perspective. We start with a critical analysis of the crowding-out effect and we present a new version of the Sraffian Supermultiplier: a model that accounts for both the multiplier and accelerator effects. We focus on different types of fiscal policies: generic ones and ‘mission-oriented’ ones that set a new direction for the economy. We show that mission-oriented policies have the potential to generate the largest positive effect on investments and output growth as well as on innovation processes and labour productivity growth. |
| |
Keywords: | Mission-oriented innovation policy Sraffian supermultiplier austerity labour productivity |
|