We investigate the claim that the way in which debtor households service their debts matters for macroeconomic performance. A Kaleckian growth model is modified to incorporate working households who borrow to finance consumption that is determined, in part, by the desire to emulate the...

We investigate the claim that the way in which debtor households service their debts matters for macroeconomic performance. A standard Kaleckian growth model is modiifed to incorporate working households who borrow to finance consumption that is determined, in part, by the desire to emulate the...

The idea that high levels of economic inequality negatively affect the rate and sustainability of economic growth is quite popular in the scientific literature. Therefore, it is usually proposed to take some regulative measures to reduce economic inequality in order to boost economic growth....