Working Paper, University of Massachusetts, Department of Economics 2008-12
This paper compares Kaleckian and Harrodian models of accumulation. The simplicity of the canonical Kaleckian model is appealing but more complex Harrodian specifications are preferable from a behavioral perspective. The local instability of Harrodian-inspired specifications, moreover, offers a unified understanding of both trend and cycles.
Kalecki Harrod Kaldor Robinson Steindl investment function stability growth cycle reserve army multiple equilibria