Growth, Instability and Cycles: Harrodian and Kaleckian Models of Accumulation and Income Distribution

Skøtt, Peter

doi:10.4337/9781849805582.00011

Cited by 95 publications

(83 citation statements)

References 38 publications

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“…Committeri (1986), Dumenil and Levy (1993) and Shaikh (2009) are in favor of the first approach while Skott (2010Skott ( , 2012) supports the latter.…”

Section: The Critiquementioning

confidence: 76%

“…For example Skott (2010Skott ( , 2012 However, the most persistent critique is related to the inability of the Kaleckian model to equate the actual rate of capacity utilization (u * ) with the exogenously given desired-or normal or planned-rate (u d ). Committeri (1986, p.170), referring to the contributions of Rowthorn (1981) and Amadeo (1986), writes that "there is the possibility of utilization being different from its normal degree, even in states of equilibrium (and indeed, actual and normal utilization would coincide only by a mere fluke)."…”

Section: The Critiquementioning

confidence: 99%

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On the 'Utilization Controversy': A Theoretical and Empirical Discussion of the Kaleckian Model of Growth and Distribution

Nikiforos

2012

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. Terms of use: Documents inLevy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad. Capital. We argue that the long-run dynamic adjustment proposed by Kaleckian scholars lacks a coherent economic rationale, and provide an alternative path toward the endogeneity of the desired utilization at the micro and macro levels. Finally, we examine the proposed adjustment mechanism econometrically. Our results verify the endogeneity of the normal utilization rate.

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“…Committeri (1986), Dumenil and Levy (1993) and Shaikh (2009) are in favor of the first approach while Skott (2010Skott ( , 2012) supports the latter.…”

Section: The Critiquementioning

confidence: 76%

Section: The Critiquementioning

confidence: 99%

On the 'Utilization Controversy': A Theoretical and Empirical Discussion of the Kaleckian Model of Growth and Distribution

Nikiforos

2012

SSRN Journal

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“…Marxian and Harrodian authors, like Dumenil/Levy (1999), Shaikh (2009) and Skott (2010Skott ( , 2012 have argued that such a position should not be considered to be a long-run equilibrium, but would rather trigger further responses by firms. Thus 'Harrodian instability' would arise, in which equilibrium utilisation moves ever farther away from target or normal utilisation.…”

Section: Endogenous Rate Of Capacity Utilisation Beyond the Short Run?mentioning

confidence: 99%

Post-Keynesian macroeconomics since the mid 1990s: main developments

Hein

2017

European Journal of Economics and Economic Policies: Intervention

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractIn this paper the main developments in post-Keynesian macroeconomics since the mid1990s will be reviewed. For this purpose the main differences between heterodox economics in general, including post-Keynesian economics, and orthodox economics will be reiterated and an overview over the strands of post-Keynesian economics, their commonalities and developments since the 1930s will be outlined. This will provide the grounds for touching upon three important areas of development and progress of postKeynesian macroeconomics since the mid-1990s: first, the integration of distribution issues and distributional conflict into short-and long-run macroeconomics, both in theoretical and in empirical/applied works; second, the integrated analysis of money, finance and macroeconomics and its application to changing institutional and historical circumstances, like the process of financialisation; and third, the development of full-blown macroeconomic models, providing alternatives to the mainstream 'New Consensus Model' (NCM), and allowing to derive a full macroeconomic policy mix as a more convincing alternative to the one implied and proposed by the mainstream NCM, which has desperately failed in the face of the recent crises.

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“…While post-Keynesian theorists conventionally assume parameter values that guarantee stability, we consider the evidence to favor instability (see Kemp-Benedict 2017c, pp. 3-4); thus, our model is of the Kaleckian-Harrodian type (Skott 2010). The instability is contained from above because capital cannot be more than fully utilized.…”

Section: Stability Connection and Coordinationmentioning

confidence: 99%

Downshifting in the Fast Lane: A Post-Keynesian Model of a Consumer-Led Transition

Kemp-Benedict

Ghosh

2018

Economies

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Abstract:If the world's countries seriously tackle the climate targets agreed upon in Paris, their citizens are likely to experience substantial changes in production, consumption, and employment. We present a long-run post-Keynesian model for studying the potential implications of a major transition on macroeconomic stability and employment. It is a demand-led model in which firms have considerable but not absolute freedom to administer prices, while household consumption exhibits inertia. Firms continually seek input-saving technological improvements that, in aggregate, tie technological progress to firms' cost structures. Together with firm pricing strategies and wage setting, the productivities of different inputs determine the functional income distribution. Saving and investment, and production and purchase of consumption goods, are undertaken by different economic actors, driven by income and capacity utilization, with the possibility that productive capacity exceeds, or falls short of, effective demand. The model produces business cycles and long waves driven by technological change. We present results for a "downshifting" scenario in which households voluntarily withdraw labor, and discuss the implications of downshifting for stability, growth, and employment. We contrast the downshifting scenario with ones in which households reduce consumption without withdrawing from the labor pool.

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Growth, Instability and Cycles: Harrodian and Kaleckian Models of Accumulation and Income Distribution

Cited by 95 publications

References 38 publications

On the 'Utilization Controversy': A Theoretical and Empirical Discussion of the Kaleckian Model of Growth and Distribution

On the 'Utilization Controversy': A Theoretical and Empirical Discussion of the Kaleckian Model of Growth and Distribution

Post-Keynesian macroeconomics since the mid 1990s: main developments

Downshifting in the Fast Lane: A Post-Keynesian Model of a Consumer-Led Transition

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