Reconciling Supply and Demand: New Evidence on the Adjustment Mechanisms between Actual and Potential Growth Rates

References

• Aghion, P., and P. Howitt. 1992. ‘A Model of Growth through Creative Destruction.’ Econometrica 60 (2): 323–351.
   Web of Science ®Google Scholar
• Aghion, P., and P. Howitt. 1998. Endogenous Growth Theory. Cambridge, MA: MIT Press.
   Google Scholar
• Aghion, P., and P. Howitt. 2009. The Economics of Growth. Cambridge, MA: MIT Press.
   Google Scholar
• Arellano, M., and O. Bover. 1995. ‘Another Look at the Instrumental Variable Estimation of Error-Components Models.’ Journal of Econometrics 68 (1): 29–51.
   Web of Science ®Google Scholar
• Arellano, M., and S. Bond. 1991. ‘Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations.’ Review of Economic Studies 58 (2): 277–297.
   Web of Science ®Google Scholar
• Arrow, K. 1962. ‘The Economic Implications of Learning by Doing.’ Review of Economic Studies 29 (3): 155–173.
   Web of Science ®Google Scholar
• Barro, R., and X. Sala-i-Martin. 2004. Economic Growth. 2nd ed. Cambridge, MA: The MIT Press.
   Google Scholar
• Blackburne, E., and M. Frank. 2007. ‘Estimation of Nonstationary Heterogeneous Panels.’ Stata Journal 7 (2): 197–208.
   Web of Science ®Google Scholar
• Blundell, R., and S. Bond. 1998. ‘Initial Conditions and Moment Restrictions in Dynamic Panel Data Models.’ Journal of Econometrics 87 (1): 115–143.
   Web of Science ®Google Scholar
• Cornwall, J., and W. Cornwall. 2001. Capitalist Development in the Twentieth Century: an Evolutionary-Keynesian Analysis. Cambridge: Cambridge University Press.
   Google Scholar
• Domar, E. 1946. ‘Capital Expansion, Rate of Growth and Employment.’ Econometrica 14 (2): 137–147.
   Web of Science ®Google Scholar
• Dray, M., and A. P. Thirlwall. 2011. ‘The Endogeneity of the Natural Rate of Growth for a Selection of Asian Countries.’ Journal of Post Keynesian Economics 33 (3): 451–468.
   Web of Science ®Google Scholar
• Frankel, M. 1962. ‘The Production Function in Allocation and Growth.’ American Economic Review 52 (5): 996–1022.
   Web of Science ®Google Scholar
• Fazzari, S. M., P. Ferri, and A. M. Variato. 2020. ‘Demand-led growth and accommodating supply’. Cambridge Journal of Economics 44 (3): 583–605.
   Web of Science ®Google Scholar
• Gujarati, D., and D. Porter. 2011. Econometria Básica-5. São Paulo: AMGH Editora.
   Google Scholar
• Hansen, L. P. 1982. ‘Large Sample Properties of Generalized Method of Moments Estimators.’ Econometrica 50 (4): 1029–1054.
   Web of Science ®Google Scholar
• Harrod, R. 1939. ‘An Essay in Dynamic Theory.’ Economic Journal 49 (193): 14–33.
   Google Scholar
• Hein, E. 2014. Distribution and Growth after Keynes. Cheltenham, UK: Edward Elgar.
   Google Scholar
• Kaldor, N. 1961. ‘Capital Accumulation and Economic Growth.’ In The Theory of Capital. edited by D. C. Hague. London: Macmillan.
   Google Scholar
• Kaldor, N. 1966. Causes of the Slow Rate of Economic Growth in the United Kingdom. Cambridge: Cambridge University Press.
   Google Scholar
• Kaldor, N. 1970. ‘The Case for Regional Policies.’ Scottish Journal of Political Economy 17 (3): 337–348.
   Web of Science ®Google Scholar
• Keynes, J. M. 1936. The General Theory of Employment, Interest and Money. London: Macmillan.
   Google Scholar
• Lanzafame, M. 2014. ‘The Balance of Payments-Constrained Growth Rate and the Natural Rate of Growth: New Empirical Evidence.’ Cambridge Journal of Economics 38 (4): 817–838.
   Web of Science ®Google Scholar
• León-Ledesma, M., and A. P. Thirlwall. 2002. ‘The Endogeneity of the Natural Rate of Growth.’ Cambridge Journal of Economics 26 (4): 441–459.
   Web of Science ®Google Scholar
• Libânio, G. A. 2009. ‘Aggregate Demand and the Endogeneity of the Natural Rate of Growth: Evidence from Latin American Economies.’ Cambridge Journal of Economics 33 (5): 967–984.
   Web of Science ®Google Scholar
• Lucas, R. 1988. ‘On the Mechanics of Economic Development.’ Journal of Monetary Economics 22 (1): 3–42.
   Web of Science ®Google Scholar
• McCombie, J. 2011. ‘Criticisms and Defences of the Balance-of-Payments Constrained Growth Model: Some Old, Some New.’ PSL Quarterly Review 64: 353–392.
   Google Scholar
• McCombie, J., and A. P. Thirlwall. 1994. Economic Growth and the Balance-of-Payments Constraint. London: Macmillan.
   Google Scholar
• McCombie, J., and A. P. Thirlwall. 2004. Essays on Balance of Payments Constrained Growth: Theory and Evidence. London: Routledge.
   Google Scholar
• Okun, A. 1962. ‘Potential GNP: Its Measurement and Significance.’ Proceedings of Business and Economic Statistics Section of the American Statistical Association 7: 98–104.
   Google Scholar
• Palley, T. 2003. ‘Pitfalls in the Theory of Growth: An Application to the Balance of Payments Constrained Growth Model.’ Review of Political Economy 15 (1): 75–84.
   Google Scholar
• Piva, M., and M. Vivarelli. 2007. ‘Is demand-pulled innovation equally important in different groups of firms?’ Cambridge Journal of Economics 31 (5): 691–710.
   Web of Science ®Google Scholar
• Pesaran, M. H., Y. Shin, and R. P. Smith. 1997. ‘Estimating Long-Run Relationships in Dynamic Heterogeneous Panels.’ DAE Working Papers Amalgamated Series 9721.
   Google Scholar
• Pesaran, M. H., Y. Shin, and R. P. Smith. 1999. ‘Pooled Mean Group Estimation of Dynamic Heterogeneous Panels.’ Journal of the American Statistical Association 94 (446): 621–634.
   Web of Science ®Google Scholar
• Pesaran, M. H., and R. P. Smith. 1995. ‘Estimating Long-Run Relationships from Dynamic Heterogeneous Panels.’ Journal of Econometrics 68 (1): 79–113.
   Web of Science ®Google Scholar
• Romer, P. 1990. ‘Endogenous Technological Change.’ Journal of Political Economy 98 (5): S71–S102.
   Web of Science ®Google Scholar
• Romero, J. P., and G. Britto. 2017. ‘Increasing Returns to Scale, Technological Catch-Up and Research Intensity: Endogenizing the Verdoorn Coefficient.’ Cambridge Journal of Economics 41 (2): 391–412.
   Web of Science ®Google Scholar
• Romero, J. P., and J. McCombie. 2016. ‘The Multi-Sectoral Thirlwall’s Law: Evidence from 14 Developed European Countries Using Product-Level Data.’ International Review of Applied Economics 30 (3): 301–325.
   Web of Science ®Google Scholar
• Roodman, D. 2009. ‘How to do Xtabond2: An Introduction to Difference and System GMM in Stata.’ Stata Journal 9 (1): 86–136.
   Web of Science ®Google Scholar
• Setterfield, M. 2006. ‘Thirlwall’s Law and Palley’s Pitfalls: A Reconsideration.’ In Growth and Economic Development: Essays in Honour of A.P. Thirlwall, edited by P. Arestis, J. McCombie, and R. Vickerman. Cheltenham, UK: Edward Elgar.
   Google Scholar
• Setterfield, M. 2011. ‘The Remarkable Durability of Thirlwall’s Law.’ PSL Quarterly Review 64 (259): 393–427.
   Google Scholar
• Setterfield, M. 2012. ‘Exploring the Supply Side of Kaldorian Growth Models.’ Trinity College Department of Economics, Working Paper 12-06.
   Google Scholar
• Solow, R. M. 1956. ‘A Contribution to the Theory of Economic Growth.’ Quarterly Journal of Economics 70 (1): 65–94.
   Web of Science ®Google Scholar
• Swan, T. 1956. ‘Economic Growth and Capital Accumulation.’ Economic Record 32 (2): 334–361.
   Google Scholar
• Thirlwall, A. P. 1979. ‘Balance of Payments Constraint as an Explanation of International Growth Rate Differences.’ BNL Quarterly Review 32 (128): 45–53.
   Google Scholar
• Thirlwall, A. P. 2002. The Nature of Economic Growth. Cheltenham, UK: Edward Elgar.
   Google Scholar
• Thirlwall, A. P. 2011. ‘Balance of Payments Growth Models: History and Overview.’ PSL Quarterly Review 64: 307–351.
   Google Scholar
• Tobin, J. 1972. ‘Inflation and Unemployment.’ American Economic Review 62: 1–18.
   Web of Science ®Google Scholar
• Verdoorn, P. J. 1949. ‘Factors That Determine the Growth of Labor Productivity.’ In Productivity Growth and Economic Performance, edited by J. McCombie, M. Pugno, and B. Soro. Basingstoke, UK: Palgrave Macmillan.
   Google Scholar
• Young, A. 1928. ‘Increasing Returns and Economic Progress.’ Economic Journal 38 (6): 527–542.
   Google Scholar