Finance and the Cambridge equation
Abstract
A profit-making financial system is introduced into the Pasinetti model of growth and distribution with the aim of showing that Pasinetti's formulation implicitly incorporated a well-defined theory of finance. In a golden age, the financial sector must set the rates of interest below the rate of profit to compensate for the remuneration of risks of enterprise generated by expectations realized in the broad, but not at the level of individual firms. If there exists a relationship between investment and finance, intermediaries contribute to the determination of the rates of profit and growth. Their decisions may not allow a competitive economy to return to the golden age once pushed away from it.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic Info
Article provided by Taylor and Francis Journals in its journal Review of Political Economy.
Volume (Year): 16 (2004)
Issue (Month): 2 ()
Pages: 163-177
Contact details of provider:
Web page: http://taylorandfrancis.metapress.com/link.asp?target=journal&id=102233
Order Information:
Web: http://www.tandf.co.uk/journals/subscription.asp
Related research
Keywords:References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fazi, Elido & Salvadori, Neri, 1981. "The Existence of a Two-Class Economy in the Kaldor Model of Growth and Distribution," Kyklos, Wiley Blackwell, vol. 34(4), pages 582-92.
- Fazi, Elido & Salvadori, Neri, 1985. "The Existence of a Two-Class Economy in a General Cambridge Model of Growth and Distribution," Cambridge Journal of Economics, Oxford University Press, vol. 9(2), pages 155-64, June.
- Laing, N F, 1969. "Two Notes on Pasinetti's Theorem," The Economic Record, The Economic Society of Australia, vol. 45(111), pages 373-85, September.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Alfarano, Simone & Förster, Niels & Milaković, Mishael & Mundt, Philipp, 2013. "The real versus the financial economy: A global tale of stability versus volatility," Economics Discussion Papers 2013-8, Kiel Institute for the World Economy.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:taf:revpoe:v:16:y:2004:i:2:p:163-177For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.