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MINSKY MODELS: A STRUCTURED SURVEY
Author(s) -
Nikolaidi Maria,
Stockhammer Engelbert
Publication year - 2017
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/joes.12222
Subject(s) - economics , asset (computer security) , veblen good , debt , real estate , keynesian economics , neoclassical economics , macroeconomics , finance , computer science , computer security
Abstract Minsky's ideas have recently gained prominence in the mainstream as well as in the heterodox literature. However, there exists no agreement upon the formal presentation of Minsky's insights. The aim of this paper is to survey the literature and identify differences and similarities in the ways through which Minskyan ideas have been formalized. We distinguish between the models that focus on the dynamics of debt or interest, with no or a secondary role for asset prices, and the models in which asset prices play a key role in the dynamic behavior of the economy. Within the first category of models, we make a classification between (i) the Kalecki–Minsky models, (ii) the Kaldor–Minsky models, (iii) the Goodwin–Minsky models, (iv) the credit rationing Minsky models, (v) the endogenous target debt ratio Minsky models and (vi) the Minsky–Veblen models. Within the second category of models, we distinguish between (i) the equity price Minsky models and (ii) the real estate price Minsky models. Key limitations of the models and directions for future research are outlined.