Affiliation:
1. School of Economics and National Research Center for Socialist Political Economy with Chinese Characteristics Renmin University of China Beijing China
2. School of Marxism Beijing Forestry University Beijing China
Abstract
AbstractAn important feature of the neo‐Kaleckian growth theory is that it distinguishes different growth (and demand) regimes: a profit‐led regime and a wage‐led regime. Both empirical and theoretical research have shown that growth (demand) regimes are not stable. In this study, we show that a change in income distribution can affect the normal capital capacity ratio, which can further cause a (re)switching in growth (and demand) regimes.