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We study endogenous employment and distribution dynamics in a Post-Keynesian model of Kalecki-Steindl tradition. Productivity adjustments stabilise employment and the labour share in the long run: technological change allows firms to replenish the reserve army of workers in struggle over income...
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, 2005). Either implicitly or explicitly, these contributions adopted the induced innovation hypothesis by Kennedy (1964 …): there exists an innovation possibility frontier out of which profit-maximizing firms freely choose the optimal combination … the choice of intensity of technical change, that is the share of R&D expenditure in output. In our framework, innovation …
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