ON THE IMPORTANCE OF THE RETENTION RATIO IN A KALECKIAN DISTRIBUTION AND GROWTH MODEL WITH DEBT ACCUMULATION-A COMMENT ON SASAKI AND FUJITA (2012)

摘要

In a paper published in Metroeconomica, Sasaki and Fujita (2012) argue that an earlier paper of mine (Hein, 2007; Metroeconomica, 57, pp. 310-39), which introduces interest payments and corporate debt into a post-Kaleckian distribution and growth model, leads to empirically implausible and unusual results from a Keynesian/Kaleckian perspective. The major reason for the presumed shortcomings is found in the overly restrictive assumption of a retention ratio equal to unity. However, in the alternative model presented by Sasaki and Fujita either perfect capital gains have to be assumed or firms have to be allowed to issue equity in the accumulation process. The latter variant yields results which are again close to Hein (2007).