Delay Kaldor-Kalecki Model Revisited

This paper studies dynamics of the Kaldor-Kalecki model of national income and capital stock. The investment function is assumed to have not only a Kaldorian characteristics, namely, a S-shaped form but also a Kaleckian characteristics, that is, a gestation delay between "investment decision" and "investment implementation." We divide the analysis into two parts. In the first part, we assume that the time period under consid-eration is short enough so that the capital stock is not affected by the flow of investment and then examine the delay effect on dynamics of national income. In the second part, taking the capital accumulation into account, we draw attention to how the delay affects cyclic dynamics observed in the non-delay Kaldor-Kalecki model. It is demonstrated that the investment delay quantitatively affects the dynamic behavior but not qualitatively