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• W2091757394 abstract "This article presents a basic Kaleckian model, enriched by the simultaneous addition of an Harrodian investment function and an autonomous expenditure component that grows at an exogenous rate. The model shows that the usual short-run properties (wage-led growth) are only transient, since the long-run growth rate converges towards that of autonomous expenditures. However, the impact on the level of variables (output, capital stock, labour, etc.) is permanent. The model also provides a conditional solution to the ‘second’ Harrod knife-edge problem: the destabilising behaviour of firms (as they adjust their investment decisions to the discrepancy between the actual and the normal rates of capacity utilisation) is now required to achieve the normal rate of capacity utilisation." @default.
• W2091757394 created "2016-06-24" @default.
• W2091757394 creator A5088432160 @default.
• W2091757394 date "2014-10-20" @default.
• W2091757394 modified "2023-10-03" @default.
• W2091757394 title "Tackling the instability of growth: a Kaleckian-Harrodian model with an autonomous expenditure component" @default.
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• W2091757394 doi "https://doi.org/10.1093/cje/beu039" @default.
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