A Post-Keynesian Guide
Chapter 7: Extending Kaleckian models I: saving out of wages and open economy issues
In this chapter we will extend the different versions of the basic Kaleckian models presented in Chapter 6. The final purpose is to assess the empirical work which has been done on the basis of the Bhaduri and Marglin (1990) or post-Kaleckian model–a model which already in its most simple version is able to generate different potential regimes of demand and accumulation. We will start in Section 7.2 by introducing saving out of wages into the closed economy versions of the Rowthorn (1981) and Dutt (1984, 1987) neo-Kaleckian and the Bhaduri and Marglin (1990) and Kurz (1990) post-Kaleckian models outlined in Chapter 6. Then we will further extend the post-Kaleckian model by means of introducing international trade in Section 7.3. This will provide us with the version of the theoretical model which has been used in empirical research on wage-and profit-led demand and growth regimes since the early or mid-1990s, starting with the works of Marglin and Bhaduri (1990, 1991) and Bowles and Boyer (1995). The main results of this research will be reviewed in Section 7.4, and Section 7.5 will summarize and conclude this chapter.
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