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Income Distribution and Economic Growth in a Multi-Sectoral Kaleckian Model

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  • Hiroshi Nishi

Abstract

This study builds an income distribution and growth model within a simple multi-sectoral Kaleckian framework. The model has heterogeneous features in each sector in that the responses of saving and investment to changes in macroeconomic performance differ sectorally, and there are also different sectoral shares of saving and investment. We consider the determinants that establish the economic growth regime (i.e. wage-led and profit-led) and the stable output growth rate adjustment within this framework. By doing so, we reveal the sectoral composition of saving and investment and that elasticity of saving and investment matter for the formation of a growth regime and the stability of the output growth rate at the aggregate level.

Suggested Citation

  • Hiroshi Nishi, 2014. "Income Distribution and Economic Growth in a Multi-Sectoral Kaleckian Model," Discussion papers e-14-011, Graduate School of Economics Project Center, Kyoto University.
    • Handle: RePEc:kue:dpaper:e-14-011
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    Cited by:

    1. Jung Hoon Kim & Marc Lavoie, 2017. "Demand-led Growth and Long-run Convergence in a Neo-Kaleckian Two-sector Model," Korean Economic Review, Korean Economic Association, vol. 33, pages 179-206.

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    More about this item

    Keywords

    Multi-sectoral Kaleckian model; Income distribution; Sectoral heterogeneity;
    All these keywords.

    JEL classification:

    • B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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