The Theory of Aggregate Investment in Closed Economic Systems

by Kofi Kissi Dompere

Overview

Although economic theory has increased our understanding of some economic problems, it has rendered others, including the problem of capital accumulation, growth, and development, more difficult to understand. Focusing on capitalist economic systems, this book develops a theoretical approach to the study of aggregate capital dynamics. The theory is developed within the Keynesian framework of aggregate thinking and builds on the work of such Cambridge economists as Robinson, Kaldor, and Pasinetti. The approach helps to resolve some theoretical difficulties within the Keynesian framework for studying aggregate investment behavior. Dompere also provides a criticism of the neoclassical investment theory and the general neoclassical theoretical framework for studying aggregate capital accumulation, investment, and growth.

Reexamining some questions on investment that earlier theorists have tried to answer, this study develops some of the basic ideas of Keynes, Robinson, Kaldor, and Pasinetti into a general theoretical system that allows an optimal aggregate capital and investment to be determined for a given information set.

Product Details

ISBN-13:	9780313307966
Publisher:	Bloomsbury Academic
Publication date:	11/30/1999
Series:	Contributions in Economics and Economic History , #202
Pages:	224
Product dimensions:	6.00(w) x 9.00(h) x 0.62(d)

About the Author

KOFI KISSI DOMPERE is associate professor of economics at Howard University. He is coauthor of Epistemics of Development Economics (Greenwood, 1995), and author of a companion to the present volume, The Theory of Aggregate Investment and Output Dynamics in Open Economic Systems (Greenwood, 1999). Additionally, Dompere has published a number of researched essays on the effects of technological progress on factor demand, inventory accumulation and prices. He has also authored a number of complementary essays on the theory of fuzzy decisions and cost-benefit analysis.

Table of Contents

Introduction
The Neo-Keynesian Framework
The Neo-Keynesian Optimal Capital Theory
The Theory of Aggregate Investment Behavior in a Closed Economy
Fiscal Policy and Optimal Capital Accumulation
The Theory of Aggregate Investment and Neoclassical One-Sector Growth in a Closed Economy
A Methodological Critique and Appraisal of the Neoclassical Theory of Investment and Other Alternative Theories
Concluding Remarks and Reflections
References
Index

Editorial Reviews

Presents a theoretical understanding of dynamics of economic evolution, viewed against the background of contemporary domestic and international politico-economic arrangements. After a presentation of essential elements of the neo-Keynesian framework and the neo- Keynesian optimal capital theory, the theory of aggregate investment behavior in a closed economy is advanced, the role played by fiscal policy is modeled, and the relationship between the theory of aggregate investment and the neoclassical one-sector growth in a closed economy is examined. The author teaches economics at Howard University. Annotation c. Book News, Inc., Portland, OR (booknews.com)

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