The Importance of the Retention Ratio in a Kaleckian Model with Debt Accumulation


Hein (2007) investigates the effects of debt of firms and interest rates on output and growth, and obtains the following three results. First, the long-run equilibrium is stable only if the short-run equilibrium is debt-led growth. Second, to obtain a positive long-run equilibrium value of the debt-capital ratio under the debt-led growth regime, extremely… (More)


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