Hein, Eckhard (1999): Interest Rates, Income Shares, and Investment in a Kaleckian Model. Published in: Review of Political Economy and Social Sciences No. 5 (1999): pp. 5-22.
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Neither the older post-Keynesian models of growth and distribution (Kaldor, J. Robinson) nor the models based on the work by Kalecki and Steindl take sufficiently account of monetary va¬riables. Starting from a non-monetary Kaleckian effective demand model by Bhaduri & Marglin in which investment is determined by costs and capacity utilisation and in which equilibrium capacity utilisation may be below normal, this paper deals with the effects of an exogenous variation in the monetary interest rate on the real equilibrium position of the economic system. Different regimes of accumulation are derived and it is shown that a negative relation between the interest rate and the rates of capa¬city utilisation, accumulation and profit usually expected in post-Keynesian theory only exists under special conditions.
|Item Type:||MPRA Paper|
|Original Title:||Interest Rates, Income Shares, and Investment in a Kaleckian Model|
|Keywords:||Interest Rates; Income Shares; Investment; Kaleckian Model|
|Subjects:||E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E12 - Keynes; Keynesian; Post-Keynesian
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E25 - Aggregate Factor Income Distribution
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E22 - Capital; Investment; Capacity
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E40 - General
|Depositing User:||Eckhard Hein|
|Date Deposited:||13. Nov 2009 21:15|
|Last Modified:||13. Feb 2013 04:58|
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