Cambridge Distribution in a World Economy
The paper outlines a two-country Cambridge model of growth and distribution. The condition for the Cambridge equation to apply to the world economy is outlined. When this is satisfied, a dual theorem holds in one of the two countries, and the country with the greater aggregate savings ratio is in current account surplus. The original Cambridge model was formulated as a means of equating the warranted and natural growth rates of Harrod (1939) and Domar (1946) for the case of a closed economy. Thus, the world version is a method of satisfying Harrod's requirement that his model be capable of extension so as to include foreign trade.
|Date of creation:||1999|
|Date of revision:||1999|
|Contact details of provider:|| Postal: St. Anthony's College, Newcastle Road, Galway|
Phone: +353-91 524411 ext. 2501
Fax: +353-91 524130
Web page: http://economics.nuigalway.ie
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:nig:wpaper:0042. 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: (Srinivas Raghavendra)
If references are entirely missing, you can add them using this form.