Convergence of actual, warranted, and natural growth rates in a Kaleckian–Harrodian‐classical model

Abstract

This paper describes a dynamic one-sector macroeconomic model that draws on both post-Keynesian and classical/neo-Marxian themes. The model features an equilibrium in which Harrod’s actual, warranted, and natural growth rates coincide. Dynamic processes unfolding over both short and long time scales lead the economy to exhibit both business cycles and long waves. The Keynesian stability condition is assumed not to hold, so the model features short-run instability, which is bounded from above by a utilization ceiling. Labor constraints affect distribution through conflict pricing. In contrast to other Kaleckian–Harrodian models, we do not assume an exogenous source of demand. Instead, short-run instability is bounded from below by firms’ expectations that the downturn will eventually reverse.

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Item Type:	Article
Authors/Creators:	Kemp‐Benedict, E.
Copyright, Publisher and Additional Information:	This is the peer reviewed version of the following article: Kemp-Benedict E. Convergence of actual, warranted, and natural growth rates in a Kaleckian–Harrodian-classical model. Metroeconomica. 2020; 71: 851–881. https://doi.org/10.1111/meca.12305, which has been published in final form at https://doi.org/10.1111/meca.12305. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
Keywords:	classical, cycles, Harrodian, Kaleckian, long waves, neo-Marxian, technological change
Dates:	Published: November 2020 Published (online): 17 July 2020
Institution:	The University of Leeds
Academic Units:	The University of Leeds > Faculty of Environment (Leeds) > School of Earth and Environment (Leeds) > Sustainability Research Institute (SRI) (Leeds)
Depositing User:	Symplectic Publications
Date Deposited:	30 Apr 2024 09:23
Last Modified:	30 Apr 2024 09:23
Published Version:	https://onlinelibrary.wiley.com/doi/10.1111/meca.1...
Status:	Published
Publisher:	Wiley
Identification Number:	10.1111/meca.12305
Open Archives Initiative ID (OAI ID):	oai:eprints.whiterose.ac.uk:212061

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Convergence of actual, warranted, and natural growth rates in a Kaleckian–Harrodian‐classical model

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