Yannis Dafermos (2012) “Liquidity preference, uncertainty, and recession in a stock-flow consistent model”, Journal of Post Keynesian Economics, 34 (4), 749-776.
URL:
http://mesharpe.metapress.com/app/home/contribution.asp?referrer=parent&backto=issue,7,9;journal,1,40;linkingpublicationresults,1:109348,1
DOI: 10.2753/PKE0160-3477340407
Abstract:
This paper develops a stock-flow consistent model that explicitly integrates the role of liquidity preference and perceived uncertainty into the decision-making process of households, firms, and commercial banks. Emphasis is placed on (1) the link between the precautionary motive and the asset choice of the private sector, (2) the effect of perceived uncertainty on the desired margins of safety and borrowing, and (3) the impact of financial obligations on the liquidity preference of households and firms. Performing a simulation experiment, the paper illuminates the channels through which a rise in perceived uncertainty is likely to set off a recessionary process.
Keywords: liquidity preference, perceived uncertainty, recessionary process, stock-flow consistent modeling
SFC modeling in Paris
At the Conference on Political Economy and the outlook for capitalism there will be several sessions on stock-flow models.
Papers listed in the program include:
Michael Clévenot, Jacques Mazier and Yann Guy, Estimation et simulation d’un régime de croissance financiarisée avec un modèle SFC
Edwin Le Heron and Toussaint Bakala, Generalized liquidity preference theory in a SFC model and financial crisis
Amine Marouane, La révolution tunisienne: enjeux et perspectives à partir d’un modèle SFC
James Juniper, Modern Money Theory (MM) and Minsky: Towards a Stock-flow-Consistent (SFC) Synthesis
Stefano Lucarelli, A Stock-Flow Analysis of a Schumpeterian Innovation Economy: The Role of Knowledge(s) in the Economic Development
Vincent Duwicquet and Jacques Mazier, Ajustement et redistribution en union monétaire
Marc Lavoie, Le modèle SFC à trois pays et deux banques centrales à la lumière de la crise de la zone euro
Jamel Saadaoui, Modèle SFC à deux pays avec financiarisation et changes flexibles
Pascal Seppecher, em>Agents hétérogènes et monnaie endogène dans un modèle SFC
Alessandro Caiani, Stefano Lucarelli and Antoine Godin, Schumpeter in a matrix: a Stock Flow Consistent analysis of technological change
Tarik Mouakil, A Minsky Crisis in a Stock-Flow Consistent Model
Ahmed Hammadache and Vincent Duwicquet, Prix pétroliers et déséquilibres internationaux avec l’apport d’un modèle SFC
Stephen Kinsella and G. Tiou-Tagba Aliti, Simulating the impact of austerity on the irish economy using a stock-flow consistent model
Gennaro Zezza, Using SFC models for the analysis of European economies
Antoine Godin, Green Jobs for full employment, a Stock Flow Consistent analysis
It looks like the largest gathering of SFC modeler so far!