Theoretical and Empirical Shortcomings of the Kaleckian Investment Function

Skøtt, Peter

doi:10.1111/j.1467-999x.2010.04111.x

“…Marxian and Harrodian authors, like Dumenil/Levy (1999), Shaikh (2009) and Skott (2010Skott ( , 2012 have argued that such a position should not be considered to be a long-run equilibrium, but would rather trigger further responses by firms. Thus 'Harrodian instability' would arise, in which equilibrium utilisation moves ever farther away from target or normal utilisation.…”

Section: Endogenous Rate Of Capacity Utilisation Beyond the Short Run?mentioning

confidence: 99%

Post-Keynesian macroeconomics since the mid 1990s: main developments

Hein

¹

2017

European Journal of Economics and Economic Policies: Intervention

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractIn this paper the main developments in post-Keynesian macroeconomics since the mid1990s will be reviewed. For this purpose the main differences between heterodox economics in general, including post-Keynesian economics, and orthodox economics will be reiterated and an overview over the strands of post-Keynesian economics, their commonalities and developments since the 1930s will be outlined. This will provide the grounds for touching upon three important areas of development and progress of postKeynesian macroeconomics since the mid-1990s: first, the integration of distribution issues and distributional conflict into short-and long-run macroeconomics, both in theoretical and in empirical/applied works; second, the integrated analysis of money, finance and macroeconomics and its application to changing institutional and historical circumstances, like the process of financialisation; and third, the development of full-blown macroeconomic models, providing alternatives to the mainstream 'New Consensus Model' (NCM), and allowing to derive a full macroeconomic policy mix as a more convincing alternative to the one implied and proposed by the mainstream NCM, which has desperately failed in the face of the recent crises.

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“…It is hard to evaluate the models since their predictions can be negated by other inuences explosive cycles for instance may be tamed by the 1 Theoretical issues are discussed in a companion paper, Skott and Zipperer (2010). See also Skott (2010). 1 inuence of public policy and it may not even be obvious which data should be used as the empirical counterparts to the theoretical variables.…”

Section: Datamentioning

confidence: 99%

Cyclical patterns of employment, utilization, and profitability

Zipperer

¹

,

Skøtt

²

2011

Journal of Post Keynesian Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may UNIVERSITY OF MASSACHUSETTS AMHERST AbstractThe interaction between income distribution, accumulation, employment and the utilization of capital is central to macroeconomic models in the`heterodox' tradition. This paper examines the stylized pattern of these variables using US data for the period after 1948. We look at the trends and cycles in individual time series and examine the bivariate cycical patterns among the variables. JEL classication: E12, E32, O41

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“…Second, our paper does not speak to the issue of whether capacity utilization should adjust in the long-run to a desired rate, be that endogenous or exogenous. This is an open controversy among Post-Keynesian economists: competing views can be found in Lavoie (2014, Chapter 6) on the one hand, and Skott (2012) on the other. In this respect, our contribution falls within the standard NeoKaleckian approach: with an exogenous desired utilization rate, the steady state of the model would be independent of aggregate demand.…”

Section: Resultsmentioning

confidence: 99%

Government spending composition, aggregate demand, growth, and distribution

Zamparelli¹,

Tavani

²

2017

Review of Keynesian Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe study a demand-driven growth and distribution model with a public sector, both without and with government debt. Government spending is used to finance the accumulation of public capital and to pay wages to public employees. The interaction between public capital and induced technical change makes long-run growth: (i) hump-shaped in the composition of government spending, (ii) wage-led, and (iii) government spending-led. Provided that the interest rate on government bonds is kept sufficiently below the growth rate, the size of government debt is irrelevant for long-run growth.Keywords: Keynesian growth, Government spending composition, Factor shares, Fiscal policys. JEL Classification System: E12, E25, E62, H50. We study a demand-driven growth and distribution model with a public sector, both without and with government debt. Government spending is used to finance the accumulation of public capital and to pay wages to public employees. The interaction between public capital and induced technical change makes long-run growth: (i) hump-shaped in the composition of government spending, (ii) wage-led, and (iii) government spending-led. Provided that the interest rate on government bonds is kept sufficiently below the growth rate, the size of government debt is irrelevant for long-run growth.

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Theoretical and Empirical Shortcomings of the Kaleckian Investment Function

Cited by 173 publications

References 30 publications

Post-Keynesian macroeconomics since the mid 1990s: main developments

Post-Keynesian macroeconomics since the mid 1990s: main developments

Cyclical patterns of employment, utilization, and profitability

Government spending composition, aggregate demand, growth, and distribution

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