We investigate the effects of (i) profit distribution to either laborers or capital-owners, (ii) sector-specific or efficient rationing schemes, and (iii) government consumption in a two-sector disequilibrium growth model with sluggish real wage rate adjustment (which affects capital accumulation).

excess demand, investment, rationing, unemployment
Mathematical Methods and Programming (jel C6), Consumption, Saving, Production, Employment, and Investment (jel E2), Prices, Business Fluctuations, and Cycles (jel E3), Fiscal Policies and Behavior of Economic Agents (jel H3)
dx.doi.org/10.1016/0176-2680(94)90025-6, hdl.handle.net/1765/13081
European Journal of Political Economy
Erasmus School of Economics

van Marrewijk, J.G.M, & Verbeek, J.B.L.M. (1994). Two-sector disequilibrium growth. European Journal of Political Economy, 373–388. doi:10.1016/0176-2680(94)90025-6