Real Wicksell Effect,Demand for Capital and Stability |
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Authors: | Saverio M Fratini |
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Abstract: | The aim of this paper is to study the relationship between reverse capital deepening and instability of the equilibrium between investments and savings. It is shown for a model with n commodities, infinitely many linear technique of production, and overlapping generations that a badly behaved real Wicksell effect, as in the case of a ‘reswitching of techniques’, can involve instability. |
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