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Kaldor's Neo-Pasinetti Model and the Cambridge Theory of Distribution

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  • Araujo, Jorge Thompson
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    Abstract

    The purpose of this paper is to analyze the significance of Kaldor's (1966) neo-Pasinetti model for the development of the Cambridge theory of distribution. The author intends to verify the extent to which Kaldor's model introduces a major change in the main theoretical argument of the Cambridge approach--namely, the reincorporation of the rate of interest as an element in the process of adjustment between saving and investment. It is argued that the neo-Pasinetti model is analogous to the full-capacity utilization version of the traditional IS-LM framework. Copyright 1995 by Blackwell Publishers Ltd and The Victoria University of Manchester

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    Bibliographic Info

    Article provided by University of Manchester in its journal The Manchester School of Economic & Social Studies.

    Volume (Year): 63 (1995)
    Issue (Month): 3 (September)
    Pages: 311-17

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    Handle: RePEc:bla:manch2:v:63:y:1995:i:3:p:311-17

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