Kaleckian-Harrodian model

The document introduces a multi-sector Harrodian-Kaleckian growth model intended for long-run policy analysis, specifically to address the structural changes needed for the 2030 Agenda's sustainable development goals. The model utilizes a Hicksian dynamic to link productivity growth with functional income distribution and target-return pricing, resulting in constant capital productivity and profit share as long-run tendencies. While currently lacking government, financial, and foreign sectors, the model is capable of generating asymmetric business cycles, structural change, and long waves.

• The proposed model is a multi-sector Harrodian-Kaleckian growth model that uses a Hicksian floor and ceiling to contain locally unstable dynamics, linking productivity growth to the functional income distribution.
• By combining the Hicksian dynamic with target-return pricing, the model reproduces two of Kaldor’s stylized facts as long-run tendencies: constant profit share and constant capital productivity.
• Despite the current absence of foreign, financial, and government sectors, the model demonstrates the ability to produce long waves, structural change, and asymmetric business cycles characterized by short contractions and long expansions.

APA

Stockholm Environment Institute (2017). Kaleckian-Harrodian model. https://www.sei.org/publications/kaleckian-harrodian-model/

Chicago

Stockholm Environment Institute. Kaleckian-Harrodian model. 2017. https://www.sei.org/publications/kaleckian-harrodian-model/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Kaleckian-Harrodian model |date=11 April 2017 |url=https://www.sei.org/publications/kaleckian-harrodian-model/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2017kaleckianharrodian, author = {{Stockholm Environment Institute}}, title = {{Kaleckian-Harrodian model}}, institution = {Stockholm Environment Institute}, year = {2017}, month = apr, url = {https://www.sei.org/publications/kaleckian-harrodian-model/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }