Traverse in a two-sector Kaleckian model of growth with target-return pricing

The first purpose of this article is to extend the Kaleckian model of growth and distribution to a two-sector framework, taking into account the fact that the investment good is a basic good. The second objective is to present an analysis of the traverse. It is shown that such a traverse exists when for instance profit margins are changed or when inducements to invest change. The Kaleckian traverse does not require the restrictions on technology that the standard Hicksian traverse needs.