Convergence towards the normal rate of capacity utilization in neo-Kaleckian models: the role of non-capacity creating autonomous expenditures

Abstract : Neo-Kaleckian models of growth and distribution have been highly popular among heterodox economists. Two drawbacks of these models have, however, been underlined in the literature: first, the models do not usually converge to their normal rate of capacity utilization; second, the models do not include the Harrodian principle of dynamic instability. Some Sraffian economists have long been arguing that the presence of non-capacity creating autonomous expenditures provides a mechanism that brings back the model to normal rates of capacity utilization, while safeguarding the main Keynesian message and without going back to classical conclusions. The present article provides a very simple proof of this, showing within a neo-Kaleckian model that the Harrodian principle of dynamic instability gets tamed by the presence of autonomous consumer expenditures.
Type de document :
Article dans une revue
Metroeconomica, Wiley, 2016, 76 (1), pp.172-201. 〈10.1111/meca.12109〉
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Contributeur : Pascal Seppecher <>
Soumis le : samedi 9 juillet 2016 - 15:38:13
Dernière modification le : jeudi 11 janvier 2018 - 06:23:32

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Marc Lavoie. Convergence towards the normal rate of capacity utilization in neo-Kaleckian models: the role of non-capacity creating autonomous expenditures. Metroeconomica, Wiley, 2016, 76 (1), pp.172-201. 〈10.1111/meca.12109〉. 〈hal-01343732〉

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