Federica Arena
Roma Tre University
Abstract
Since the seminal work ofBaccaro and Pontusson(2016), the Comparative Political Economy (CPE) literature has increasingly reintegrated aggregate demand as a central determinant of growth trajectories in advanced economies. This paper contributes to this burgeoning Growth Model (GM) research agenda by applying the Supermultiplier decomposition to analyze Italy’s economic growth from 1960 to 2022. Our approach provides a granular examination of the demand components driving growth, distinguishing between autonomous and induced expenditures, a critical separation often overlooked in traditional decompositions. By situating our empirical findings within the institutional and political context of each identified sub-period, we offer a comprehensive analysis that bridges post-Keynesian economic theory with the CPE focus on the ”politics of growth.”
Keywords
Italy’s Economic Growth, Demand-Led Growth, Post-Keynesian Economics, Comparative
Political Economy (CPE), Growth Models.
Jel Codes
E12, O52, B50, P16
