Strong accelerator and concavity of the consumption function in neokaleckian models: rediscussing the wage-led growth

Abstract

This essay proposes an alternative for generalization, under certain conditions, of the concept of strong accelerator, in the sense given by Bhaduri and Marglin (1988 and 1990) model, using a concave consumption function. Based on this, it demonstrates that the possibility of a wage-led growth becomes very probable and no more an eventual case. Symmetrically, it makes improbable the possibility of occurrence of profit squeeze. The text also analyses critically the Bhaduri and Marglin canonical model, presenting questions about its clarity as a source of criticism of a range of neokaleckians growth models that have been published previously.

Keywords:
robinsonian stability; strong accelerator; Bhaduri and Marglin; wage-led growth; profit-squeeze