Title: The Neo-Pasinetti Theorem in Cambridge and Kaleckian Models of Growth and Distribution
Abstract:The neoclassical theory of distribution is usually associated with diminishing marginal physical products, technical substitution, competition, and optimizing, where factor prices are determined by th...The neoclassical theory of distribution is usually associated with diminishing marginal physical products, technical substitution, competition, and optimizing, where factor prices are determined by their relative scarcities. In Solow's neoclassical growth model, the long-run equilibrium growth rate is exogenous, set by the rate of growth if the labor force (and the exogenous rate of technical progress). The rate of profit is then endogenous, determined by this rate of growth, technology and the rate of saving of the economy. In the so-called new neoclassical growth models, these relationships are reversed. When these models are reduced to their bare essentials, the steady-state rate of profit is the exogenous variable, while the rate of growth becomes an endogenous variable, entirely determined by the product of the profit rate and the given savings rate (Kurz, 1997).Read More
Publication Year: 2022
Publication Date: 2022-02-17
Language: en
Type: book-chapter
Indexed In: ['crossref']
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Cited By Count: 26
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