Kaldor's Neo-Pasinetti Model and the Cambridge Theory of Distribution
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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Volume (Year): 63 (1995)
Issue (Month): 3 (September)
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