A note on the "Kalecki-Steindl" steady-state approach to growth and income distribution
Article Abstract:
Models of growth and income distribution consistent with the 'Kalecki-Steindl' approach have received a great deal of support. The approach emphasizes that the long-period equilibrium degree of productive capacity changes with various steady state paths. However, the approach has been put to severe criticisms, most of which are centered around the hypothetical constancy of pricing and investment behavior. Moreover, if the approach is universally applied to a multi-sector economy it faces the dangers of over-determination.
Publication Name: The Manchester School of Economic and Social Studies
Subject: Social sciences
ISSN: 0025-2034
Year: 1995
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Differential profit rates and convergence to the natural state
Article Abstract:
Long-run equilibrium, or the natural state, is seen as a point to which the economic system reverts, according to classical economic theory. A study of capital allocation by heads of companies shows that general disequilibrium can occur when agents' expectations are falsified. Agents' reactions to disequilibrium affect convergence. Initial conditions affect whether there is convergence to the natural state, and major changes in ex ante rates of profit tend to have a strong destabilising effect.
Publication Name: The Manchester School of Economic and Social Studies
Subject: Social sciences
ISSN: 0025-2034
Year: 1997
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Adverse selection and the market for building society mortgage finance
Article Abstract:
The estimated long- and short run equations for the supply and demand needed to build society net advances is tested to determine the possibility of adverse selection of mortgage market in the UK. The Johansen procedure and three-stage least squares were used to identify a backward-bending mortgage supply curve which pave the way for possible multiple equilibria. This demonstrates the fairly slow characteristics in adjusting supply and demand towards long-run equilibrium values.
Publication Name: The Manchester School of Economic and Social Studies
Subject: Social sciences
ISSN: 0025-2034
Year: 1997
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