Services on Demand
Journal
Article
Indicators
Cited by SciELO
Access statistics
Related links
Similars in SciELO
Share
Problemas del desarrollo
Print version ISSN 0301-7036
Abstract
VELAZQUEZ ORIHUELA, Daniel. A neo-kaleckian explanation of the bidirectional relationship between growth and distribution. Prob. Des [online]. 2022, vol.53, n.211, pp.107-132. Epub Apr 24, 2023. ISSN 0301-7036. https://doi.org/10.22201/iiec.20078951e.2022.211.69875.
A neo-kaleckian model is proposed to analyze the bidirectional relationship between growth and income distribution. To do this, the price equation of Kalecki (1971) is modified and the model of Bhaduri and Marglin (1990) is extended. If the growth is wage-led, then the income path is shown to be cyclical. In contrast, if it is profit-driven, it is sustained. In this last scenario, income is concentrated in profits because the profit rate is higher than the growth rate. Finally, it is argued that if the state redistributes income in a greater amount than the market concentrates it, wage-led growth can be sustained.
Keywords : neo-kaleckian; growth; distribution; wage-led growth; earnings-led growth.