A post-Kaleckian econometric analysis of interest rates, income distribution, capacity utilization, accumulation and profit rates: the case of Italy
Year: 2024
Type: article
Abstract: The aim of this paper is to analyze the effects of interest rates on rates of capacity utilization, capital accumulation and profit in Italy within a post-Kaleckian theoretical framework. The model employed in the analysis, which was developed by Hein/Schoder (2011), is based on monetary- authority-controlled real long-term interest rates that affect the functional distribution of income. Interest rates directly and indirectly affect the equilibrium rates of capacity utilization, accumulation and profit at a given debt–capital ratio. Our findings based on two econometric methods revealed that a higher real long-term interest rate has an adverse effect on these three endogenous variables in the Italian economy.
Author: Ozan Ekin Kurt
Institution: Yeditepe University
Language: English
Topic: Economic Theory and Policy
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4403707975