Corporate Debt Dynamics, Capital Accumulation, and Macroeconomic Instability: A Post-Keynesian Analysis

Min-Chang Ko and Sangheon Lee
Additional contact information
Min-Chang Ko: Wonkwang University
Sangheon Lee: Korea University

Korean Economic Review, 2015, vol. 31, 177-197

Abstract: This study presents a simple model of corporate debt dynamics within the framework of the post-Keynesian theory of growth and distribution. Our model introduces corporate debt dynamics into a modified version of Lavoie's Minsky?Steindl model, yielding long-run results different from those of Lavoie (1995) and Hein (2007) by showing that a stable long-run equilibrium exists in both puzzling and normal cases. On the basis of these results, this study shows that Minsky��s financial instability as well as Steindl��s paradox of debt as a phenomenon of macroeconomic instability can be formulated within the framework of a post-Keynesian debt dynamics system.

Keywords: Corporate Debt Dynamics; Post-Keynesian Theory of Growth and Distribution; Macroeconomic Instability; Paradox of Debt (search for similar items in EconPapers)
JEL-codes: E12 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://keapaper.kea.ne.kr/RePEc/kea/keappr/KER-20150630-31-1-07.pdf (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:kea:keappr:ker-20150630-31-1-07

Access Statistics for this article

Korean Economic Review is currently edited by Kyung Hwan Baik

More articles in Korean Economic Review from Korean Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by KEA ().