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

We model demand-led growth with endogenous adjustment of labor supply and productivity to accommodate the demand-led path, reconciling Harrod’s warranted rate of demand growth with supply. The model delivers a range of growth paths and unemployment rates rather than a single “natural rate.” Theoretically, the steady-state growth path may be dynamically stable or unstable, but a detailed empirical calibration favors stability. We show analytically that if demand dynamics are stable, supply will converge to demand. While a minimum unemployment rate ultimately imposes a supply constraint on growth, empirical results show that a wide range of steady-state growth rates are feasible across different demand regimes. The results explain how economies can become trapped with low growth due to weak demand or fiscal austerity and suggest policy responses to stagnant demand..

  • 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, 2017)
  • 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