 The Rate of Interest in Kaleckian Models of Distribution and GrowthChapter 12 in Money, Distribution Conflict and Capital Accumulation, 2008, pp 87-99 from Palgrave Macmillan Abstract: Abstract The Kaleckian models of distribution and growth which build on the foundations of Kalecki (1954, 1971) and Steindl (1952) show the following characteristics:20 First, unlike the Kaldor-Robinson model, it is supposed that productive capacities in the industrial sector of the economy may not be fully utilized also in the long period. Unemployment and underutilization of capacity given by the capital stock are not only short-period but, rather, permanent features of capitalist economies. Secondly, with the technical conditions of production given and constant unit variable costs up to full capacity output, functional income distribution is determined by firms’ mark-up pricing in incompletely competitive goods markets. Thirdly, in complete agreement with the Kaldor-Robinson model, investment is viewed to be independent of saving also in the long period. But, contrary to the Kaldor-Robinson model, the adjustment of saving to investment is supposed to take place through output and growth, and not through redistribution between wages and profits. Keywords: Interest Rate; Capital Stock; Capital Accumulation; Capacity Utilization; Profit Share (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59560-6_12 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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