This paper provides a demand-driven growth model of Kalecki’s (1943) political business cycle. It incorporates the three fundamental assumptions that govern Kalecki’s model: wage-led demand, the “reserve army of labor” effect, and capitalists’ disproportionate power over fiscal policy....

The contention that “inclusive” institutions are the deep determinants of economic growth remains unsatisfactory. This paper develops an alternative theoretical and empirical case that economic structures are the fundamental cause of economic performance. Economic structures determine the...