Exploring the supply side of Kaldorian growth models

Mark Setterfield

Review of Keynesian Economics, 2013, vol. 1, issue 1, 22-36

Abstract: Recent Kaldorian growth models emphasize the need to reconcile the demand-led actual rate of growth and the potential rate of growth. This issue is revisited in light of criticism suggesting it is a 'red herring'. An explicit model of the supply side is used to show that, in a mature economy, it is unlikely that steady-state, demand-led growth will always be automatically accommodated by the supply side. The conclusion reached is that attention must, therefore, be paid to the possible emergence of supply constraints on growth, and the implications thereof for steady-state, demand-led growth models.

Keywords: demand-led growth; potential rate of growth; natural rate of growth; Kaldorian growth models (search for similar items in EconPapers)
JEL-codes: E12 O41 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (10)

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Working Paper: Exploring the Supply Side of Kaldorian Growth Models (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:elg:rokejn:v:1:y:2013:i:1:p22-36

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