Aggregate demand externalities and capacity utilization: a response to Gahn (2023)
Abstract
This note provides a response to criticisms advanced by Gahn (2023) regarding the aggregate demand externality framework. Gahn criticizes the framework's assumptions, questions the robustness of the results when independent investment functions are introduced, and expresses skepticism about the empirical results in Petach and Tavani (2019). We show that none of these critiques survive scrutiny.
Fields of Study & Subjects
Economics of Agriculture and Food Markets
Monetary Policy and Economic Impact
Global trade and economics
Publication details
- Journal / source
- Review of Keynesian Economics
- Volume
- 14
- Issue
- 3
- Pages
- 451–459
- Publication date
- 1 August 2026