Instability of the US economy: A post-Kaleckian econometric analysis of functional income distribution, capacity utilization, capital accumulation and productivity growth

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2021-12

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Kurt, Ozan Ekin

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This article analyzes demand and “overall” regimes in the US economy from a post-Kaleckian theoretical framework. To that end, we employed a model that takes into account the interactions between functional income distribution, capacity utilization, capital accumulation and productivity growth. This model by Hein and Tarassow posits that the demand regime of an economy might be wage-led, profit-led and “intermediate”; while the overall regime, which endogenizes the productivity growth, might be contractive, expansive or “intermediate”. The model also allows unstable demand and overall regimes, which were also the findings of our econometric investigation of the full (1970-2017) and sub- (1979-2017) sample periods of the US economy. This article contributes to the literature by being the first empirical study on the US economy through a model that simultaneously characterizes demand and overall regimes.

Subject Keywords

Capital accumulation, Functional income distribution, Growth, Post Keynesian economics, Productivity, USA

URI

http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/1163
https://hdl.handle.net/11511/96783

Journal

ODTÜ Gelişme Dergisi

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Department of Economics, Article

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Citation Formats

O. E. Kurt, “Instability of the US economy: A post-Kaleckian econometric analysis of functional income distribution, capacity utilization, capital accumulation and productivity growth,” ODTÜ Gelişme Dergisi, vol. 48, no. 2, pp. 251–288, 2021, Accessed: 00, 2022. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/1163.