Exploring the Supply Side of Kaldorian Growth Models
AbstractRecent Kaldorian growth models emphasize the need to reconcile the demand-led actual rate of growth and the potential rate of growth. This issue is revisited in light of criticism suggesting it is a “red herring”. An explicit model of the supply side is used to show that, in a mature economy, it is unlikely that steady-state, demand-led growth will always be automatically accommodated by the supply side. The conclusion reached is that attention must, therefore, be paid to the possible emergence of supply constraints on growth, and the implications thereof for steady-state, demand-led growth models.
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Bibliographic InfoPaper provided by Trinity College, Department of Economics in its series Working Papers with number 1206.
Length: 27 pages
Date of creation: Jul 2012
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demand-led growth; potential rate of growth; natural rate of growth; Kaldorian growth models;
Other versions of this item:
- Mark Setterfield, 2013. "Exploring the supply side of Kaldorian growth models," Review of Keynesian Economics, Edward Elgar, vol. 1(1), pages 22-36, January.
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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