Skip Navigation



Cambridge Journal of Economics Advance Access published online on March 7, 2008
Cambridge Journal of Economics, doi:10.1093/cje/ben003
This Article
Right arrow Full Text
Right arrow Full Text (PDF)
Right arrow All Versions of this Article:
32/5/781    most recent
ben003v1
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Charles, S.
Right arrow Search for Related Content
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

© The Author 2008. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

Corporate debt, variable retention rate and the appearance of financial fragility

Sébastien Charles*

* Department of Economics, LED-EPEH, University of Paris 8

Address for correspondence: 115 Boulevard Jean Jaurès, 92110 Clichy, France; email: sebcharles92{at}yahoo.fr

This paper develops a formal neo-Kaleckian model of growth and distribution with excess capacity. First, we deal with the stability and uniqueness of equilibrium in the short run and make some comparative static exercises. Then we show the long run behaviour of the model by endogenising the retention rate and the level of debt. Within that framework, we investigate the conditions for multiple equilibria and show the possibility of instability following a series of increases in the rate of interest or as a result of less prudent dividend policies on the part of firms.

Key Words: Capacity utilisation • Retention rate • Instability • Kaleckian model

JEL classifications: B59, E12, E22, O41

Manuscript received July 2, 2007; final version received December 7, 2007.


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?




Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.