Growth with unused capacity and endogenous depreciation

Arbeitspapier

This paper contributes to the debate on income growth and distribution from a nonmainstream perspective. It looks, in particular, at the role that the degree of capacity utilization plays in the process of growth of an economy that is not perfectly competitive. The distinctive feature of the model presented in the paper is the hypothesis that the rate of capital depreciation is an increasing function of the degree of capacity utilization. This hypothesis implies analytical results that differ somewhat from those yielded by other Kaleckian models. Our model shows that, in a number of cases, the process of growth can be profit-led rather than wage-led. The model also determines the value to which the degree of capacity utilization converges in the long run.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 795

Classification and Topics

• Classification: Wirtschaft ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; Aggregate Factor Income Distribution ; Economic Growth and Aggregate Productivity: General
• Subject: Kaleckian Models of Growth ; Capital Accumulation ; Capital Depreciation ; Income Distribution and Growth

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Patriarca, Fabrizio ; Sardoni, Claudio
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/110044
• Last update: 10.03.2025, 11:41 AM CET