Estimating normal capacity utilization rates and their tolerable ranges of values: A comment on Setterfield

Florian Botte ()
Additional contact information
Florian Botte: CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: Taking the potential instability of the Kaleckian model of growth as his starting point, Setterfield (2017) investigated, inter alia, the possibility of taming the Harrodian instability. His investigation used a range of tolerable values, rather than a unique value, for the normal rate of capacity utilization. After illustrating his point theoretically, Setterfield then proposes empirical methods to estimate the normal capacity utilization rate and the corresponding tolerance range. This paper suggests improved methods to estimate the normal rate of capacity utilization and its tolerance range. The proposed alternative solutions offer better consistency with Post-Keynesian behavioral theories, and the presented exploratory narrative based on these suggestions can partly explain the current stagnation.

Keywords: Normal rate of capacity utilization; Harrodian instability; Kaleckian growth theory (search for similar items in EconPapers)
Date: 2017-07-05
New Economics Papers: this item is included in nep-pke
Note: View the original document on HAL open archive server: https://hal.science/hal-01543643
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in AFEP 2017, Jul 2017, Rennes, France

Downloads: (external link)
https://hal.science/hal-01543643/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01543643

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().