A Neo-Kaldorian Approach to Structural Economic Dynamics
AbstractFrom a neo-Kaldorian perspective, this paper seeks to establish the concepts of demand and productivity regimes in an open version of the pure labour Pasinettian model. In order to derive the demand regime, a disaggregated version of the Keynesian multiplier is derived for an open economy, while the productivity regime is built in terms of disaggregated Kaldor-Verdoorn laws. The upshot is a multi-sector growth model of structural change and cumulative causation, in which an extended version of the Pasinettian model to foreign trade may be obtained as a particular case. Furthermore, we show that the evolution of demand patterns, while being affected by differential rates of productivity growth in different sectors of the economy, also play an important role in establishing the pace of technical progress.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 50370.
Date of creation: Oct 2013
Date of revision:
Cumulative causation; structural change; Kaldor-Verdoorn law;
Other versions of this item:
- Araujo, Ricardo & Trigg, Andrew, 2013. "A Neo-Kaldorian Approach to Structural Economic Dynamics," MPRA Paper 49758, University Library of Munich, Germany.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-11 (All new papers)
- NEP-HME-2013-10-11 (Heterodox Microeconomics)
- NEP-PKE-2013-10-11 (Post Keynesian Economics)
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