Lange’s 1938 model: dynamics and the “Optimum propensity to consume”
Oskar Lange’s 1938 article “The Rate of Interest and the Optimum Propensity to Consume”, is usually associated with the original IS-LM approach of the late 1930s. However, Lange’s article was not only an attempt to illuminate Keynes’s main innovations but the first part of a wide project that included the development of a theory of economic evolution. This paper aims at showing that Lange’s article can help illuminating critical aspects of this project: in particular, Lange’s idea that a synthesis between Kaldor’s and Kalecki’s theories and that of Schumpeter, might have been possible and that it represented (in intentions) a “modern” and consistent reconstruction of the Marxist theory of the business cycle. Section 1 clarifies Lange’s early reflection on dynamics. Section 2 centers on Lange’s 1938 static model and indicates the effects of a change of saving on investment. Section 3 suggests a dynamic reconstruction from which are addressed important arguments raised by Lange in a series of papers written between 1934 and 1942.
|Date of creation:||2014|
|Contact details of provider:|| Postal: Center for the History of Political Economy Box 90097 Durham, NC 27708-0097|
Phone: (919) 660-6899
Web page: http://hope.econ.duke.edu
References listed on IDEAS
Please 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.:
- Cristiano Antonelli & Francesco Quatraro, 2014.
"The effects of biased technological changes on total factor productivity: a rejoinder and new empirical evidence,"
The Journal of Technology Transfer,
Springer, vol. 39(2), pages 281-299, April.
- Cristiano Antonelli & Francesco Quatraro, 2014. "The Effects of Biased Technological Changes on Total Factor Productivity: A Rejoinder and New Empirical Evidence," GREDEG Working Papers 2014-01, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
- Cristiano Antonelli & Francesco Quatraro, 2014. "The effects of biased technological changes on total factor productivity: a rejoinder and new empirical evidence," Post-Print hal-01070563, HAL.
- Mauro Boianovsky, 2003. "The IS-LM Model and the Liquidity Trap Concept: from Hicks to Krugman," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] a13, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:hec:heccee:2014-2. 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: (Center for the History of Political Economy Webmaster)
If references are entirely missing, you can add them using this form.