Accounting Consistency in Kaleckian Models of Growth and Distribution: a Preliminary Step and a Research Agenda

Abstract

Economic growth and income distribution are hotly debated topics in economics, both in mainstream and heterodox traditions. Another concern in economic literature centers on financial crisis. Some Post-Keynesians have tackled the first theme by employing Kaleckian models, and the second through Stock-Flow Consistent Models. This paper integrates both approaches by means of macroeconomic financial balances. After estimating these balances, we build a theoretical model and apply it to some OECD countries’ dataset. Our findings underscore the model’s capacity to explain some puzzles in the Kaleckian literature. Finally, we present a research agenda in order to improve our model.