This paper examines the relationship between the distribution of income and capacity utilization in the context of the Kaleckian model of growth and distribution. We provide an exposition of the underlying theory of wage- and profit-led growth. We emphasize the implications of possible...

This paper examines the endogeneity (or lack thereof) of the rate of capacity utilization in the long run within the context of the controversy surrounding the Kaleckian model of growth and distribution. We argue that the proposed long-run dynamic adjustment, proposed by Kaleckian scholars,...