Handbook of Alternative Theories of Economic Growth
Show Less

Handbook of Alternative Theories of Economic Growth

Edited by Mark Setterfield

Comprising specially commissioned essays, the Handbook provides a comprehensive overview of alternative theories of economic growth. It surveys major sub-fields (including classical, Kaleckian, evolutionary, and Kaldorian growth theories) and highlights cutting-edge issues such as the relationship between finance and growth, the interplay of trend and cycle, and the role of aggregate demand in the long run.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 6: Surveying Short-run and Long-run Stability Issues with the Kaleckian Model of Growth

Marc Lavoie


1 Marc Lavoie 1 Introduction Writing a survey on the Kaleckian model of growth and distribution is a difficult task in view of the existence of the excellent survey that has already been provided by Blecker (2002). Since then, another survey, just as complete, has been written in French by Allain (2009). In addition, at least three other chapters in the present book deal with complications involving the Kaleckian model. As a result the present chapter will deal with elementary issues of stability, both in the short run and in the long run. We start with the former, before addressing the long run in the second half of the chapter. In both cases, we will show that the generality of Kaleckian results is greater than many critics of the Kaleckian model have suggested. 2 The standard Kaleckian model The usual Kaleckian model is made up of three equations: an investment equation, a saving equation, and a pricing equation. Each of these equations can be made more complicated at will, as will be shown in other chapters, and of course we may wish to add other equations, for instance equations defining inflation determination (Cassetti, 2002; Lavoie, 1992, Chapter 7), or central bank reaction functions (Lavoie and Kriesler, 2007). Here we stick to the basic model. r 5 mu/v g s 5 spr gi 5 g 1 guu 1 grm (1) (2) (3) We assume away overhead labour (but see Rowthorn, 1981 and Lavoie, 1992), so that the pricing function in terms...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.