Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110044
Authors: 
Patriarca, Fabrizio
Sardoni, Claudio
Year of Publication: 
2014
Series/Report no.: 
Working Paper, Levy Economics Institute 795
Abstract: 
This paper contributes to the debate on income growth and distribution from a nonmainstream perspective. It looks, in particular, at the role that the degree of capacity utilization plays in the process of growth of an economy that is not perfectly competitive. The distinctive feature of the model presented in the paper is the hypothesis that the rate of capital depreciation is an increasing function of the degree of capacity utilization. This hypothesis implies analytical results that differ somewhat from those yielded by other Kaleckian models. Our model shows that, in a number of cases, the process of growth can be profit-led rather than wage-led. The model also determines the value to which the degree of capacity utilization converges in the long run.
Subjects: 
Kaleckian Models of Growth
Capital Accumulation
Capital Depreciation
Income Distribution and Growth
JEL: 
E12
E25
O40
Document Type: 
Working Paper

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