TY - JOUR
T1 - Building blocks of a heterodox business cycle theory
AU - Calvert Jump, Robert
AU - Stockhammer, Engelbert
N1 - Funding Information:
This study is supported by the National Natural Science Foundation of China (Grants 41975049, 42175046, 42065009, 41861134034, and 41905042). X Wu is also supported by the Basic Strengthening Research Program (Grant 2021-JCJQ-JJ-1058), and the Ground-based Space Environment Comprehensive Monitoring Network (the Chinese Meridian Project II). B Chen is supported by the Natural Science Foundation of Yunnan Province (Grant 201901BB050045). X Wang is supported by the Strategic Priority Research Program of the Chinese Academy of Sciences (Grant XDA15021000). L Hoffmann is supported by the joint research project AeroTrac of the Deutsche Forschungsgemeinschaft (Grant DFG HO5102/1-1). YF Tian is supported by the Open Research Project of Large Research Infrastructures of CAS-“Study on the interaction between low/mid-latitude atmosphere and ionosphere based on the Chinese Meridian Project”. YN Wang is supported by the second Tibetan Plateau Scientific Expedition and Research Program (Grant 2019QZKK0604).
Publisher Copyright:
© 2023 Taylor & Francis Group, LLC.
PY - 2023
Y1 - 2023
N2 - A key characteristic of heterodox theories of the business cycle is their focus on endogenous business cycle mechanisms. This paper provides an overview and comparison of four models in heterodox business cycle theory: multiplier-accelerator models, Goodwin models, Minskyan debt-cycle models, and momentum trader models. A representative model from each theory is formulated as a two-dimensional predator-prey system in continuous time, which allows us to identify the different stabilizing and destabilizing mechanisms. We argue that the theories are substantially competing, as they posit different mechanisms that explain cycles, but we also argue that these mechanisms are not mutually exclusive. We suggest that heterodox economists work toward a synthesis.
AB - A key characteristic of heterodox theories of the business cycle is their focus on endogenous business cycle mechanisms. This paper provides an overview and comparison of four models in heterodox business cycle theory: multiplier-accelerator models, Goodwin models, Minskyan debt-cycle models, and momentum trader models. A representative model from each theory is formulated as a two-dimensional predator-prey system in continuous time, which allows us to identify the different stabilizing and destabilizing mechanisms. We argue that the theories are substantially competing, as they posit different mechanisms that explain cycles, but we also argue that these mechanisms are not mutually exclusive. We suggest that heterodox economists work toward a synthesis.
KW - Business cycles
KW - Crises
KW - Endogenous cycles
UR - http://www.scopus.com/inward/record.url?scp=85148583831&partnerID=8YFLogxK
U2 - 10.1080/01603477.2023.2167093
DO - 10.1080/01603477.2023.2167093
M3 - Article
AN - SCOPUS:85148583831
SN - 0160-3477
VL - 46
SP - 334
EP - 358
JO - JOURNAL OF POST KEYNESIAN ECONOMICS
JF - JOURNAL OF POST KEYNESIAN ECONOMICS
IS - 2
ER -