Matthews, Peter Hans An econometric model of the circuit of capital. (English) Zbl 1058.91561 Metroeconomica 51, No. 1, 1-39 (2000). Summary: The circuit of value outlined in the second volume of Marx’s Capital provides a coherent framework for the characterization of macroeconomic phenomena from a classical perspective. This paper builds on D. K. Foley’s [J. Econ. Theory 28, 300–319 (1982; Zbl 0501.90020)] formal reconstruction of the circuit to derive estimable forms for its three critical mechanisms: the production, realization and recommittal lags. The entire model is then estimated for the United States over the period 1948-89 on the basis of the A. Shaikh and A. Tonak [Measuring the Wealth of Nations: The Political Economy of National Accounts, Cambridge University Press, New York (1995)] data set, and the results are used to explore a number of current controversies, including (on the basis of simulation exercises) the consequence of various deficit reduction proposals. MSC: 91B64 Macroeconomic theory (monetary models, models of taxation) 91B28 Finance etc. (MSC2000) 91B40 Labor market, contracts (MSC2010) Keywords:macroeconomic; reduction proposals Citations:Zbl 0501.90020 Software:SHAZAM PDFBibTeX XMLCite \textit{P. H. Matthews}, Metroeconomica 51, No. 1, 1--39 (2000; Zbl 1058.91561) Full Text: DOI