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Kaleckian Lags in General Equilibrium

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  • Paul Zak

Abstract

The relationship between production lags and business cycles has a long history in economics, but was first analyzed rigorously by Michal Kalecki in 1935. In a linear delay differential equation model, Kalecki showed that production delays can endogenously generate cycles. Whether this result holds in general equilibrium has been an open question. An answer is provided by examining the effect of Kaleckian lags in the Solow and Cass-Koopmans growth models. It is shown that such models do produce endogenous cycles, confirming that Kalecki's model relating lags to cycles holds in general equilibrium settings.

Suggested Citation

  • Paul Zak, 1999. "Kaleckian Lags in General Equilibrium," Review of Political Economy, Taylor & Francis Journals, vol. 11(3), pages 321-330.
    • Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:321-330
    DOI: 10.1080/095382599107048
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    References listed on IDEAS

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    Cited by:

    1. Luca Guerrini, 2012. "Constant population growth rate and time to build: the Solow model case," Economics Bulletin, AccessEcon, vol. 32(4), pages 3260-3265.
    2. Akio Matsumoto & Márk Molnár & Ferenc Szidarovszky, 2025. "The discrete solow model with time-to-build," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 48(2), pages 1755-1781, December.
    3. Matsumoto, Akio & Szidarovszky, Ferenc, 2023. "Delay Solow Model with a Normalized CES Production Function," Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 305-323.
    4. Jutta G. Kurth & Adam A. Majewski & Jean-Philippe Bouchaud, 2025. "Revisiting the Excess Volatility Puzzle Through the Lens of the Chiarella Model," Papers 2505.07820, arXiv.org, revised Feb 2026.
    5. Wei-Bin Zhang, 2023. "Chaos, Complexity, and Nonlinear Economic Theory," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 13173.
    6. Yüksel, Mustafa Kerem, 2011. "Capital dependent population growth induces cycles," Chaos, Solitons & Fractals, Elsevier, vol. 44(9), pages 759-763.
    7. Hartwig, Johannes, 2022. "Semi-endogenous growth dynamics in a macroeconomic model with delays," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 538-551.
    8. Ishida, Junichiro & Yokoo, Masanori, 2004. "Threshold nonlinearities and asymmetric endogenous business cycles," Journal of Economic Behavior & Organization, Elsevier, vol. 54(2), pages 175-189, June.
    9. Franke, Reiner, 2018. "Reviving Kalecki’s business cycle model in a growth context," Journal of Economic Dynamics and Control, Elsevier, vol. 91(C), pages 157-171.

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