As well-known, the canonical Neo-Kaleckian growth model fails to reconcile actual and normal rates of utilization in equilibrium. Some recent contributions revive an old proposal for solving this problem - making the normal rate of utilization an endogenous variable that converges to the actual...

This paper looks at the effect of demand shocks on the investment share of the economy. Using panel data on 20 OECD countries, we show that the rate of growth of autonomous demand (exports, public spending and housing investment) is positively correlated with subsequent values of the share of...

Using a new dataset of construction investment in countries across the world for the period 2000-2011, this paper provides novel evidence of a bell-shaped relationship between the share of construction in GDP and economic development. The relative level of construction activity tends to increase...