This paper considers a puzzle in growth theory from a Keynesian perspective. If neither wage and price adjustment nor monetary policy are effective at stimulating demand, no endogenous dynamic process exists to assure that demand grows fast enough to employ a growing labor force. Yet output...

The steady-state method of analysing long-run economic tendencies is inconsistent with accurate representation of the autonomous role played by aggregate demand in the growth process. This role implies long-run variability of capacity utilization, which is denied by assumption in steady-state...

The variability of long-run capacity utilisation has to be considered as an expression of the determining role of aggregate demand in the growth process. This paper discusses the model proposed by Serrano in which such determining role is apparently reconciled with condition of normal...

The paper deals with the ‘Keynesian’ theories of accumulation, i.e. those sharing the premise that in the long period, no less than in the short, it is investment that generates the corresponding amount of savings, and thus aggregate demand what ultimately determines growth. The...

This paper investigates the effect of profit sharing on the economy by using a Kaleckian model. Unlike exiting studies, we endogenize the profit share. Our analysis shows that if the size of the productivity-enhancing effect of profit sharing is small, profit sharing decreases the equilibrium...

This paper explores implications for capacity utilization and economic growth driven by effective demand of income distribution featuring the possibility of profit sharing with workers. Firms choose to compensate workers with either a base wage or a share of profits on top of this base wage. In...

The ratio of saving to social income is generally conceived as the result of stable patterns of individual and institutional decisions to save. In a theoretical context in which aggregate demand is recognized as playing a part in the growth process positing a general assumption on consumption,...

This paper empirically explores the validity of the Kaldorian insights into economic growth and development. In doing so, we examine the three laws outlined in Kaldor’s analysis and test their relevance to the Greek economy for the period 1970–2006. We employ the ARDL method to analyse the...

The aim of this paper is to test the existence of a balance of payments constraint on the Spanish economic growth. The model developed by Thirlwall (1979) is tested in the context of an individual economy following the strategy proposed by Atesoglu (1993, 1994). The results show little influence...

In this paper, we set up a model of economic growth which deals with Keynesian unemployment, from non-Walrasian/Keynesian perspectives, investigate the possibility of persistent “growth cycles” generated and analyze the effects of flexibility of (real) wages on the long-run economic...