Traverse, Hysteresis, and Normal Rates of Capacity Utilization in Kaleckian Models of Growth and Distribution

Abstract

The paper deals with the main objection addressed against the Kaleckian model of growth and distribution, i.e., the endogenous rate of utilization need not be equal to its normal rate in the long run. Various mechanisms are introduced to bring the Kaleckian model to a fully adjusted position, where the realized and normal rates of capacity utilization are equated. When hysteresis effects are considered, Kaleckian results may be sustained even in fully adjusted long-run positions.