Is the long-run equilibrium wage-led or profit-led? A Kaleckian approach

Hiroaki Sasaki

Structural Change and Economic Dynamics, 2012, vol. 23, issue 3, 231-244

Abstract: This paper presents a Kaleckian growth model in which (i) the rate of capacity utilization, the profit share, and the rate of employment are adjusted in the medium run, and (ii) the normal rate of capacity utilization and the expected rate of growth are adjusted in the long run. Both the Kalecki-type and the Marglin–Bhaduri-type investment functions are introduced. Using the model, we examine which regime is obtained in the long-run equilibrium, the wage-led growth regime or the profit-led growth regime.

Keywords: Kaleckian model; Long-run equilibrium; Wage-led growth; Profit-led growth (search for similar items in EconPapers)
JEL-codes: E12 E24 O41 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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Working Paper: Is the Long-run Equilibrium Wage-led or Profit-led? A Kaleckian Approach (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:23:y:2012:i:3:p:231-244

DOI: 10.1016/j.strueco.2012.03.007

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