TY - JOUR
T1 - Economy-Finance-Environment-Society Interconnections In a Stock-Flow Consistent Dynamic Model
AU - Carnevali, Emilio
AU - Deleidi, Matteo
AU - Pariboni, Riccardo
AU - Veronese Passarella, Marco
PY - 2023/9/12
Y1 - 2023/9/12
N2 - This work takes inspiration from four theoretical strands: recent developments in ecological macroeconomics; the Schumpeterian framework of evolutionary economics that emphasises the entrepreneurial role of the State; the stock-flow consistent approach to macroeconomic modelling; and the supermultiplier model. Building upon these approaches, we develop a formal model that reproduces key interactions between the economy, the financial sector, the ecosystem and the society. We test and assess the effects of several fiscal policies. We find that, in principle, mission-oriented innovation policies are the most effective option in supporting innovation and growth, while reducing income inequality. However, lacking a ‘green’ and progressive taxation system, they are unlikely to reverse the current trend in atmospheric temperature.
AB - This work takes inspiration from four theoretical strands: recent developments in ecological macroeconomics; the Schumpeterian framework of evolutionary economics that emphasises the entrepreneurial role of the State; the stock-flow consistent approach to macroeconomic modelling; and the supermultiplier model. Building upon these approaches, we develop a formal model that reproduces key interactions between the economy, the financial sector, the ecosystem and the society. We test and assess the effects of several fiscal policies. We find that, in principle, mission-oriented innovation policies are the most effective option in supporting innovation and growth, while reducing income inequality. However, lacking a ‘green’ and progressive taxation system, they are unlikely to reverse the current trend in atmospheric temperature.
KW - Supermultiplier
KW - mission-oriented policy
KW - stock-flow consistent modelling
KW - climate change
KW - rebound effect
UR - http://www.scopus.com/inward/record.url?scp=85170697823&partnerID=8YFLogxK
U2 - 10.1080/09538259.2023.2217776
DO - 10.1080/09538259.2023.2217776
M3 - Article
SN - 0953-8259
SP - 1
EP - 35
JO - Review of Political Economy
JF - Review of Political Economy
ER -