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High-Growth Enterprises (HGEs) have a large economic impact, but are notoriously hard to predict. Previous research has linked high-growth episodes to the configuration of lumpy indivisible resources inside firms, such that high capacity utilisation levels might stimulate future growth. We...
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the level of demand, as captured by aggregate utilization. In a simple growth and distribution model, we show that: (i …
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. Since the latter is a reasonable proxy for demand, (i) the analysis provides a rationale for treating desired utilization as … endogenous to demand at the firm level. In general equilibrium: (ii) capital accumulation coexists with underutilization; (iii … beneficial bargaining opportunities for both capital and labor. Moreover, (vii) demand policies have multiplier effects. The slow …
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In Kaleckian models of distribution and growth the equilibrium rate of capacity utilisation may persistently diverge from the "normal rate" of utilisation. We assess this problem following the approach by Dumenil/Levy (1999) who consider the "normal rate" of utilisation in a monetary production...
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