PROFIT-RATE EQUALIZATION IN THE KALECKI-STEINDL MODEL AND THE OVER-DETERMINATION PROBLEM

This note points out that the ''over-determination'' problem discovere d by Park in Kalecki-Steindl (KS) models is not a problem intrinsic to KS models and can easily be removed if one introduces a mechanism inv olving classical competition into them. The solution to the problem su ggested by Park using a moving-average interpretation is therefore unn ecessary, and also it does not provide an adequate solution to the ''o ver-determination'' problem. However, the interpretation does serve to clarify the meaning of long-run equilibria in KS models.