This paper examines the implications of capital utilization for the dynamics of growth and convergence. Optimal decisions by economic agents regarding the utilization of capital lead to empirically plausible speeds of convergence in one-sector models of economic growth, thereby providing a...

A simple neo-Kaleckian open-economy model is presented and its implications for growth regimes are analyzed. The present model features long-run convergence to its normal rate of capacity utilization, which is conditionally achieved by incorporating the Harrodian principle of instability and...

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...