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Normal utilization rate in the Sraffa framework
Author(s) -
Huang Biao
Publication year - 2020
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.12301
Subject(s) - economics , neoclassical economics , microeconomics , production (economics) , production function , function (biology) , distribution (mathematics) , mathematical economics , mathematics , mathematical analysis , evolutionary biology , biology
This paper deals with the normal utilization rate in the Sraffa framework. It further presents two arguments about the utilization controversy surrounding the neo‐Kaleckian theory of growth and distribution: First, it shows that the normal utilization rate is generally not independent of demand and the growth rate, and this result does not rely on the neo‐classical production function and other restrictive assumptions. Second, it argues that endogenizing the normal utilization rate is not a general solution for the utilization controversy.