Profit-Rate Equalization in the Kalecki–Steindl Model and the “Over-Determination” Problem
This note points out that the “over-determination” problem discovered by Park in Kalecki–Steindl (KS) models is not a problem intrinsic to KS models and can easily be removed if one introduces a mechanism involving classical competition into them. The solution to the problem suggested by Park using a moving-average interpretation is therefore unnecessary, and also it does not provide an adequate solution to the “over-determination” problem. However, the interpretation does serve to clarify the meaning of long-run equilibria in KS models.
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Document Type: Original Article
Affiliations: University of Notre Dame
Publication date: 1997-09-01