Normal utilization rate in the Sraffa framework |
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| Authors: | Biao Huang |
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| Affiliation: | School of Economics, Institute of China’s Economic Reform & Development, National Research Center for Socialist Political Economy with Chinese Characteristics, Renmin University of China, Beijing, P. R. China |
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| Abstract: | This paper deals with the normal utilization rate in the Sraffa framework. It further presents two arguments about the utilization controversy surrounding the neo-Kaleckian theory of growth and distribution: First, it shows that the normal utilization rate is generally not independent of demand and the growth rate, and this result does not rely on the neo-classical production function and other restrictive assumptions. Second, it argues that endogenizing the normal utilization rate is not a general solution for the utilization controversy. |
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| Keywords: | fixed capital normal utilization Sraffa |
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