The Bhaduri/Marglin post-Kaleckian model in the history of distribution and growth theories: An assessment by means of model closures

Eckhard Hein

No 66/2016, IPE Working Papers from Berlin School of Economics and Law, Institute for International Political Economy (IPE)

Abstract: Starting from a review of the main strands of orthodox and heterodox distribution and growth models and their distinguishing features, with the post-Kaleckian Bhaduri/Marglin (1990) (and Kurz 1990) model as a specific, but highly flexible variant of heterodox distribution and growth theories, we develop a simple modelling framework in which we can treat these different theories as different variants of model closure. In a simple closed private one-good economy model, each theory is presented drawing on the relationship between the rate of profit and the rate of growth, as well as on the consideration of one major adjusting variable allowing for the convergence of the endogenous variables of the model to their equilibrium values. This allows for a systematic comparison of exogenous and endogenous variables, of the 'logic' or the chain of causalities in each of the approaches, and of the generation of the long-run equilibrium positions of the system. It is finally shown that the post-Kaleckian model is able to cover many, but not all of the results generated by the old neoclassical growth model, new neoclassical growth theories, classical/Marxian distribution and growth approaches, and post-Keynesian Kaldor-Robinson and Kalecki-Steindl distribution and growth theories.

Keywords: distribution; growth; model comparison; Bhaduri/Marglin model (search for similar items in EconPapers)
JEL-codes: E21 E22 E25 O41 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-gro, nep-his, nep-mac and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ipewps:662016

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