Is the Long-run Equilibrium Wage-led or Profit-led? A Kaleckian Approach

Hiroaki Sasaki

Discussion papers from Graduate School of Economics Project Center, Kyoto University

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 regime or the profit-led regime.

Keywords: Kaleckian model; long-run equilibrium; wage-led; profit-led (search for similar items in EconPapers)
JEL-codes: E12 E24 O41 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2011-04
New Economics Papers: this item is included in nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Is the long-run equilibrium wage-led or profit-led? A Kaleckian approach (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:kue:dpaper:e-11-002

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