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Normal utilization rate in the Sraffa framework

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  • Biao Huang

Abstract

This paper deals with the normal utilization rate in the Sraffa framework. It further presents two arguments about the utilization controversy surrounding the neo‐Kaleckian theory of growth and distribution: First, it shows that the normal utilization rate is generally not independent of demand and the growth rate, and this result does not rely on the neo‐classical production function and other restrictive assumptions. Second, it argues that endogenizing the normal utilization rate is not a general solution for the utilization controversy.

Suggested Citation

  • Biao Huang, 2020. "Normal utilization rate in the Sraffa framework," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 767-780, November.
    • Handle: RePEc:bla:metroe:v:71:y:2020:i:4:p:767-780
    DOI: 10.1111/meca.12301
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    References listed on IDEAS

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    2. Michalis Nikiforos, 2013. "The (Normal) Rate of Capacity Utilization at the Firm Level," Metroeconomica, Wiley Blackwell, vol. 64(3), pages 513-538, July.
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    8. Petach, Luke & Tavani, Daniele, 2019. "No one is alone: Strategic complementarities, capacity utilization, growth, and distribution," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 203-215.
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    11. Salvadori, Neri, 1988. "Fixed Capital within a von Neumann-Morishima Model of Growth and Distribution," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(2), pages 341-351, May.
    12. Marwil J. Dávila‐Fernández & Jose L. Oreiro & Lionello F. Punzo, 2019. "Inconsistency and over‐determination in neo‐Kaleckian growth models: A note," Metroeconomica, Wiley Blackwell, vol. 70(2), pages 313-319, May.
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    Cited by:

    1. Guilherme Haluska & Julia Braga & Ricardo Summa, 2021. "Growth, investment share and the stability of the Sraffian Supermultiplier model in the U.S. economy (1985–2017)," Metroeconomica, Wiley Blackwell, vol. 72(2), pages 345-364, May.
    2. Santiago J. Gahn, 2022. "Towards an explanation of a declining trend in capacity utilisation in the US economy," Working Papers PKWP2214, Post Keynesian Economics Society (PKES).

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