- 季刊経済理論 (ISSN:18825184)
- vol.45, no.4, pp.88-96, 2009-01-20 (Released:2017-04-25)
As described herein, the Kaleckian growth model microfoundation was produced. Ikeda (2006) pointed out similarity between the Kaleckian model and the New-Keynesian imperfection theory. Although he produced the Kaleckian model a microfoundation on a mark-up price setting and saving function, he gave it no Kaleckian feature that increased monopoly power decreases the growth rate. It has no an autonomous investment function. Therefore increased monopoly power increases saving, which increases investment. This paper introduces investment determination considering the growth rate of demand expectation reported by Adachi (2000). We follow Adachi (2000), which derived an investment function of the imperfect firm. Thereby, we obtain Kaleckian's particular result. The microfoundation is on Post-Keynesian streams, which value the reality of economic models based on the following points. (1) Animal spirits, which are not reduced to probabilistic expectation, determine investment. (2) Development of a credit system occurs behind the autonomous investment function. (3) The economy is on a dynamic transition path. The three points described above differ from Neo-Classical assumptions. Neo-Classicism adopts no subjective expectation such as animal spirits and subsumes that saving determines investment. It also tends to value the equilibrium state when it discusses the economy. Adopting the "ad hoc" assumption that consumption is done using only wage income, we produce no microfoundation of our entire model to assert the importance of an autonomous investment function. However, the assumption is useful when considering the relation between income distribution and the macro-economy. Although Post-Keynesian is often criticized for its lack of a microfoundation, the point is not whether a microfoundation exists but if the assumption is realistic. The Post-Keynesian school can explain the real economy despite that criticism. This paper's main point is that autonomous investment is necessary when we consider the microfoundation of the Kaleckian growth model.