The Repayment of Bank Credits Having Financed Investments in the Domar Model. Cottin-Euziol, E. Brazilian Keynesian Review, 1(2):212–217, 2015.
The Repayment of Bank Credits Having Financed Investments in the Domar Model [link]Paper  abstract   bibtex   
In this article, we show that the repayment of bank credits having financed investments can represent an outflow outside the economic circuit in the Keynesian multiplier theory, just like savings. We then consider the impact of these repayments on the dynamics of the Domar model (Domar, 1947), which aims to extend the Keynesian multiplier to the long-term. We obtain that the rate of capital accumulation has to gradually rise throughout a growth phase, in order to avoid an overproduction crisis. This result paves the way to a theory of cycles based on the repayment of past bank credits having financed investments.
@article{Cottin-Euziol,
abstract = {In this article, we show that the repayment of bank credits having financed investments can represent an outflow outside the economic circuit in the Keynesian multiplier theory, just like savings. We then consider the impact of these repayments on the dynamics of the Domar model (Domar, 1947), which aims to extend the Keynesian multiplier to the long-term. We obtain that the rate of capital accumulation has to gradually rise throughout a growth phase, in order to avoid an overproduction crisis. This result paves the way to a theory of cycles based on the repayment of past bank credits having financed investments.},
author = {Cottin-Euziol, Edouard},
journal = {Brazilian Keynesian Review},
keywords = {DOLFINS{\_}T2.4,DOLFINS{\_}WP2},
mendeley-tags = {DOLFINS{\_}T2.4,DOLFINS{\_}WP2},
number = {2},
pages = {212--217},
title = {{The Repayment of Bank Credits Having Financed Investments in the Domar Model}},
url = {http://www.braziliankeynesianreview.org/index.php/BKR/article/view/37},
volume = {1},
year = {2015}
}

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