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Traverse, Hysteresis, and Normal Rates of Capacity Utilization in Kaleckian Models of Growth and Distribution

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  • Marc Lavoie

    (Department of Economics, University of Ottawa, Ottawa, Ont. Canada KIN 6N5, mlavote@uottawa.ca)

Abstract

The paper deals with the main objection addressed against the Kaleckian model of growth and distribution, i.e., the endogenous rate of utilization need not be equal to its normal rate in the long run. Various mechanisms are introduced to bring the Kaleckian model to a fully adjusted position, where the realized and normal rates of capacity utilization are equated. When hysteresis effects are considered, Kaleckian results may be sustained even in fully adjusted long-run positions.

Suggested Citation

  • Marc Lavoie, 1996. "Traverse, Hysteresis, and Normal Rates of Capacity Utilization in Kaleckian Models of Growth and Distribution," Review of Radical Political Economics, Union for Radical Political Economics, vol. 28(4), pages 113-147, December.
    • Handle: RePEc:sae:reorpe:v:28:y:1996:i:4:p:113-147
    DOI: 10.1177/048661349602800405
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    References listed on IDEAS

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