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This paper presents a neo-Kaleckian-Goodwin model of growth and distribution. The key innovation is the introduction of managerial pay. Kaleckian monopoly power determines the functional distribution of income and Goodwin labor bargaining power determines wage bill division. The model helps...
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I construct and analyze a growth model in which technical change can increase unemployment. I first analyze the forces … that deliver a constant steady state unemployment rate in this setting. Labor-saving technical change increases … unemployment, which lowers wages and creates incentives for future investment in labor-using technologies. In the long run, this …
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