Inside debt, aggregate demand and the Cambridge theory of distribution: a note
Palley (1996. Inside debt, aggregate demand, and the Cambridge theory of distribution, Cambridge Journal of Economics , vol. 20, 465--74) argues that, when inside debt is taken into account, the Pasinetti theorem does not apply. Palley's conclusion, however, derives from a mis-specification of the steady growth equilibrium condition, according to which capitalists' accumulation of wealth equals their saving. In this note, Palley's mis-specification is corrected and it is shown that, when the rate of profits is equal to the rate of return on debt obligations, the Pasinetti theorem still holds. Furthermore, the range of validity of the dual theorem of Meade (1963. The Rate of profit in a growing economy, Economic Journal , vol. 73, no. 292, 665--74) and Samuelson and Modigliani (1966. The Pasinetti paradox in neoclassical and more general models, Review of Economic Studies , vol. 33, no. 4, 269--302) is severely reduced. Copyright 2002, Oxford University Press.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 26 (2002)
Issue (Month): 2 (March)
|Contact details of provider:|| Postal: |
Fax: 01865 267 985
Web page: http://www.cje.oupjournals.org/
|Order Information:||Web: http://www.oup.co.uk/journals|
When requesting a correction, please mention this item's handle: RePEc:oup:cambje:v:26:y:2002:i:2:p:269-274. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.