The Bhaduri–Marglin post-Kaleckian model in the history of distribution and growth theories: an assessment by means of model closures*

Abstract

Starting from a review of the main strands of orthodox and heterodox distribution and growth models and their distinguishing features, with the post-Kaleckian Bhaduri and Marglin (1990) (and Kurz 1990) model as a specific but highly flexible variant of heterodox distribution and growth theories, we develop a simple modelling framework in which we can treat these different theories as different variants of model closure. In a simple closed private one-good economy model, each theory is presented drawing on the relationship between the rate of profit and the rate of growth, as well as on the consideration of one major adjusting variable allowing for the convergence of the endogenous variables of the model to their equilibrium values. This allows for a systematic comparison of exogenous and endogenous variables, of the 'logic' or the chain of causalities in each of the approaches, and of the generation of the long-run equilibrium positions of the system. It is finally shown that the post-Kaleckian model is able to cover many but not all of the results generated by the old neoclassical growth model, new neoclassical growth theories, classical-Marxian distribution and growth approaches, and post-Keynesian Kaldor-Robinson and Kalecki-Steindl distribution and growth theories.

A crise econômica italiana e a proposta do estado como inovador de primeira instância

“…Do mesmo modo, a compressão dos salários contribui à piora das expetativas das empresas que operam no mercado doméstico, prejudicando ainda mais o crescimento do país. O salário possui, de fato, um duplo papel em um sistema capitalístico (Bhaduri e Marglin, 1990;Hein, 2017;Kalecki, 1968;Kalecki, 1971): é um custo de produção pelas empresas, mas é parte da demanda agregada através dos consumos.…”

Inequality and Growth: Marxian and Post-Keynesian/Kaleckian Perspectives on Distribution and Growth Regimes Before and After the Great Recession

“…For this purpose, we will build on the recent empirical literature on different demand and growth regimes under financialisation (Hein 2012), and the research on the distributional effects of financialisation (Hein et al 2017a(Hein et al , 2017b in particular, and provide some stylised facts on distribution and growth regimes under financialisation before the crisis in Section 2. In order to allow for a comparative assessment of the relationship between distribution and growth in these regimes from a Marxian and a Kaleckian perspective in Section 3, we then apply the method of model closure, invented by Sen (1963) and then used by Marglin (1984aMarglin ( , 1984b, Dutt (1990) and Hein (2017a), among others. We will first generate the two extreme growth regimes under financialisation before the crisis, the 'debt-led private demand boom' and the 'export-led mercantilist' regimes, in stylised Marxian and neo-Kaleckian models.…”

Marx and Keynes: from exploitation to employment

“…Hein (2017) discusses alternatives to assign certain variables of the model an exogenous or an endogenous status.…”