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A K aldor– H icks– G oodwin– T obin– K alecki model of growth and distribution
Author(s) -
Palley Thomas I.
Publication year - 2013
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/meca.12009
Subject(s) - economics , monopoly , inflation (cosmology) , income distribution , distribution (mathematics) , effective demand , keynesian economics , growth model , post keynesian economics , endogenous growth theory , wage , aggregate demand , microeconomics , neoclassical economics , labour economics , market economy , inequality , human capital , mathematical analysis , physics , theoretical physics , monetary policy , mathematics
This paper presents a K aldorian model of growth that incorporates both K aldor's theory of income distribution and his endogenous technical progress function. Growth is driven by demand‐side forces that induce supply‐side accommodation. The model incorporates H icksian induced innovation; G oodwin M arxist style labor conflict that affects wage bill division between workers and managers; T obin inflation effects; and K alecki monopoly power effects. Unlike the neo‐ K aleckian model, a K aldorian economy operates at normal capacity utilization. Monopoly power plays a role as a barrier to entry rather than determining the functional distribution of income.