What is wrong with heterodox economics? Kalecki’s profit theory as an example

Egmont Kakarot-Handtke ()

MPRA Paper from University Library of Munich, Germany

Abstract: Kalecki’s profit theory has always been popular among heterodox economist as an alternative approach to solve the paradox of monetary profits. In the present paper his formula ‘The workers spend what they get, the capitalists get what they spend’ is scrutinized for its logical and factual implications. The analysis shows that Kalecki’s alternative approach points in the right direction but unfortunately shares a crucial conceptual error with standard economics.

Keywords: National income accounting; Zero profit economy; Distributed profit; Income definition; Master equation (search for similar items in EconPapers)
JEL-codes: B22 B41 B50 E12 E25 (search for similar items in EconPapers)
Date: 2011-05-18
New Economics Papers: this item is included in nep-hme, nep-hpe, nep-mac and nep-pke
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https://mpra.ub.uni-muenchen.de/32549/1/MPRA_paper_32549.pdf revised version (application/pdf)

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