This paper examines the endogeneity (or lack thereof) of the rate of capacity utilization in the long run at the firm level. We provide economic justification for the adjustment of the desired rate of utilization toward the actual rate on behalf of a cost-minimizing firm after examining the...

The United States entered the second week of a government shutdown on Monday, with no end to the deadlock in sight. The cost to the government of a similar shutdown in 1995-96 amounted to $2.1 billion in today's dollars. However, the cost and broader consequences of today's shutdown are not yet...

The Greek economic crisis started as a public debt crisis five years ago. However, despite austerity and a bold "haircut," public debt is now around 175 percent of Greek GDP. In this policy note, we argue that Greece's public debt is clearly unsustainable, and that a significant restructuring of...

With the anti-austerity Syriza party continuing to lead in polls ahead of Greece's election on January 25, what is the outlook for restoring growth and increasing employment following six years of deep recession? Despite some timid signs of recovery, notably in the tourism sector, recent...

This paper examines the relationship between the distribution of income and capacity utilization in the context of the Kaleckian model of growth and distribution. We provide an exposition of the underlying theory of wage- and profit-led growth. We emphasize the implications of possible...

This paper examines the endogeneity (or lack thereof) of the rate of capacity utilization in the long run within the context of the controversy surrounding the Kaleckian model of growth and distribution. We argue that the proposed long-run dynamic adjustment, proposed by Kaleckian scholars,...

The paper examines the long-run fluctuations in growth and distribution through the prism of wage-and profit-led growth. We argue that the relation between distribution of income and growth changes over time. We propose an endogenous mechanism that leads to fluctuations between wage- and...

Greece's unemployment rate just hit 27.6 percent. That wasn’t supposed to happen. Why has the troika--the European Commission, International Monetary Fund (IMF), and European Central Bank--been so consistently wrong about the effects of its handpicked policies? The strategy being imposed...

This paper presents a methodological discussion of two recent "endogeneity" critiques of the Kaleckian model and the concept of distribution-led growth. From a neo-Keynesian perspective, it is criticized because it treats distribution as quasi-exogenous, while in Skott (2017), distribution is...