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What Remains of the Growth Controversy?

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  • Nancy J. Wulwick

Abstract

This essay contrasts the production function approach to Kaldor's model of increasing returns which are demand-determined. In particular, the essay analyzes Kaldor's three major empirical "laws", which were adopted by later economists, and the criticisms of these three "laws" by economists who used the Cobb-Douglas production function as a basis of analysis. In conclusion, the essay finds that econometrics has provided an inadequate basis upon which to choose between this aggregate production function and Kaldor's model of growth.

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  • Nancy J. Wulwick, 1989. "What Remains of the Growth Controversy?," Economics Working Paper Archive wp_33, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_33
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