Kaleckian Effective Demand and Sraffian Normal Prices: Towards a reconciliation
Sraffians and Kaleckians alike reject the belief that higher rates of accumulation need be associated with lower real wage rates or higher propensities to save. The rejection of this proposition is mainly based on the endogeneity of the rate of capacity utilization, both in the short and the long run. This endogeneity often relies on a discrepancy between the realized and the normal rates of profit, or between the realized and the target rate of capacity utilization, a discrepancy which some authors believe is unwarranted in long run analysis. Various models that eliminate this divergence are outlined. In all these models, the normal rate of profit itself is taken as an endogenous variable. In the first two models, the normal rate of profit depends either on the realized profit rate or the rate of interest. Supply-led results may then reappear in long run analysis. In the last model, one introduces the possibility of a divergence between the rate of return as assessed and targeted by firms, and the rate of return that is actually incorporated into prices. This divergence arises because of the bargaining power of workers and their real wage resistance. Under these conditions, the demand-led results of the Kaleckian tradition are recovered in a model with definite solutions.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 15 (2003)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CRPE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CRPE20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lavoie, Marc, 1995.
"The Kaleckian Model of Growth and Distribution and Its Neo-Ricardian and Neo-Marxian Critiques,"
Cambridge Journal of Economics,
Oxford University Press, vol. 19(6), pages 789-818, December.
- Lavoie, M., 1992. "The Kaleckian Model of Growth and Distribution and its Neo-Ricardian and Neo-Marxian Critiques," Working Papers 9201e, University of Ottawa, Department of Economics.
- John F. Henry & L. Randall Wray, 1998. "Economic Time," Macroeconomics 9811004, EconWPA.
- John F. Henry & L. Randall Wray, 1998. "Economic Time," Economics Working Paper Archive wp_255, Levy Economics Institute.
- Bhaduri, Amit & Marglin, Stephen, 1990. "Unemployment and the Real Wage: The Economic Basis for Contesting Political Ideologies," Cambridge Journal of Economics, Oxford University Press, vol. 14(4), pages 375-393, December.
- Davidson, Paul, 1972. "Money and the Real World," Economic Journal, Royal Economic Society, vol. 82(325), pages 101-115, March.
- Lavoie, Marc & Ramirez-Gaston, Pablo, 1997. "Traverse in a Two-Sector Kaleckian Model of Growth with Target-Return Pricing," The Manchester School of Economic & Social Studies, University of Manchester, vol. 65(2), pages 145-169, March.
- Lavoie, M. & Ramirez-Gaston, P., 1993. "Traverse in a Two-Sector Kaleckian Model of growth with Target Return Pricing," Working Papers 9308e, University of Ottawa, Department of Economics.
- Shipley, David D, 1981. "Pricing Objectives in British Manufacturing Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 29(4), pages 429-443, June.
- Skott,Peter, 2008. "Conflict and Effective Demand in Economic Growth," Cambridge Books, Cambridge University Press, number 9780521066310, August.
- Skott,Peter, 1989. "Conflict and Effective Demand in Economic Growth," Cambridge Books, Cambridge University Press, number 9780521365963, September.
- Park, Man-Seop, 1997. "Accumulation, Capacity Utilisation and Distribution," Contributions to Political Economy, Oxford University Press, vol. 16(0), pages 87-101.
- Boggio, Luciano, 1992. "Production Prices and Dynamic Stability: Results and Open Questions," The Manchester School of Economic & Social Studies, University of Manchester, vol. 60(3), pages 264-294, September.
- Man-Seop Park, 1997. "Normal Values and Average Values," Metroeconomica, Wiley Blackwell, vol. 48(2), pages 188-199, 06.
- S. George, 1993. "Book Review," Foreign Trade Review, , vol. 27(4), pages 439-440, January.
- Steindl, Josef, 1979. "Stagnation Theory and Stagnation Policy," Cambridge Journal of Economics, Oxford University Press, vol. 3(1), pages 1-14, March. Full references (including those not matched with items on IDEAS)