EconPapers    
Economics at your fingertips  
 

Worker Household Debt, Functional Income Distribution and Growth: a neo-Kaleckian Perspective

Pintu Parui

MPRA Paper from University Library of Munich, Germany

Abstract: In a stock-flow consistent neo-Kaleckian macro-model, along with worker households' debt dynamics, in the long-run, we incorporate distributional dynamics and demonstrate the possibility of multiple equilibria. Dynamic stability of the economy is also examined. Both debt-led and debt-burdened demand and growth regimes are possible in short-run as well as in the long-run. We find that mergers, acquisitions and hostile takeovers play a crucial role for (de)stabilizing the economy. In some instances, the speed of the adjustment parameter of the distributional dynamics becomes crucial for stabilizing the economy. Otherwise, the economy may lose its stability and gives birth to limit cycles.

Keywords: Capital Accumulation; Income Distribution; Worker Household Debt; Kaleckian Model; Limit Cycle; Stock-flow Consistency (search for similar items in EconPapers)
JEL-codes: C62 E12 E25 G34 O41 (search for similar items in EconPapers)
Date: 2020-08-12
New Economics Papers: this item is included in nep-fdg, nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/102384/1/MPRA_paper_102384.pdf original version (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:pra:mprapa:102384

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2021-10-07
Handle: RePEc:pra:mprapa:102384