Time to build in dynamics of economic models II: models of economic growth

In this paper we investigate the relationship between the time delay for building investment goods and cycles under the conditions of general equilibrium. We introduce a delay parameter in the spirit of Kalecki into the simplest class of models of growth theory. They encompass a wide range of models of neoclassical economics with a production function which shows constant return to scale, and also multi-sector models. Kalecki’s delay parameter is introduced into the equation for the accumulation of capital, assuming that the growth of the amount of capital at time t is a function of the total output of capital at time t−T.