Papers

 

Steve Fazzari's recent papers should appear here.  If you are interested in something that you cannot find easily on the web, send e-mail

Working Papers

Abstract: This paper presents a “supermultiplier” model in which the growth of autonomous demand (demand independent of the state of the economy) determines the steady-state growth rate of output. With reasonable parameters, endogenous adjustment of labor supply and productivity causes supply to accommodate the demand-led growth path, reconciling Harrod’s warranted rate of demand growth with the growth of supply. The model delivers a range of feasible aggregate growth paths and unemployment rates rather than a single “natural rate.” The results explain how economies can become trapped with low growth due to weak demand or fiscal austerity and suggest policy responses to “secular stagnation.”

  • I am working on a major new project on household financial sustainability with Barry Cynamon and Daniel Cooper. We hope to have a working apper available soon.

Recent Published and Forthcoming Papers

  • Rising Inequality, Demand, and Growth in the US Economy (with Barry Cynamon). SSRN link, February 2015 (published in the European Journal of Economics and Economic Policy).
  • Inequality, the Great Recession, and Slow Recovery (with Barry Cynamon).   SSRN link, new version October, 2014 (Cambridge Journal of Economics, 2015, follow this link for access to the on-line published version.)
  • Household Income, Demand, and Saving: Deriving Macro Data with Micro Concepts (with Barry Cynamon).   SSRN link, new version, April 2015  (published in the Review of Income and Wealth, 2016)
  • State-Dependent Effects of Fiscal Policy (with James Morley and Irina Panovska).   SSRN link, new version August, 2014 (forthcoming, Studies in Nonlinear Dynamics and Econometrics)
  • Rising Inequality, Recession, and Slow Recovery: A Sad American Tale (with Barry Cynamon).  Intereconomics, volume 48, number 6 (December, 2013).   Link to Published Version
  • Aggregate Demand, Instability, and Growth (with Piero Ferri, Edward Greenberg, and Anna Maria Variato).  Review of Keynesian Economics, volume 1 (2013), 1-21.   Link to Published Version (pdf)
  • How the Great Moderation Became a (Contained) Depression and What to Do About It (with Barry Cynamon and Mark Setterfield), World Financial Review, March 2013. Link to Published Version