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Is the Long-run Equilibrium Wage-led or Profit-led? A Kaleckian Approach

  • Hiroaki Sasaki

This paper presents a Kaleckian growth model in which (i) the rate of capacity utilization, the profit share, and the rate of employment are adjusted in the medium run, and (ii) the normal rate of capacity utilization and the expected rate of growth are adjusted in the long run. Both the Kalecki type and the Marglin-Bhaduri type investment functions are introduced. Using the model, we examine which regime is obtained in the long-run equilibrium, the wage-led regime or the profit-led regime.

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File URL: http://www.econ.kyoto-u.ac.jp/projectcenter/Paper/e-11-002.pdf
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Paper provided by Graduate School of Economics Project Center, Kyoto University in its series Discussion papers with number e-11-002.

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Length: 29 pages
Date of creation: Apr 2011
Date of revision:
Handle: RePEc:kue:dpaper:e-11-002
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