We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
A Simple Generalization of the Kaldor-Pasinetti Theory of Profit Rate and Income Distribution.
- Authors
Chiang, Alpha C.
- Abstract
This article presents a generalization of the Kaldor-Pasinetti theory of profit rate and income distribution. Kaldor's theory of profit rate and profit share envisages two classes--workers and capitalists--with two types of income, wages and profits and two saving propensities. In Pasinetti's reformulation, both classes are allowed to earn profits; hence there are three income claims. Yet, again, only two saving propensities are used. Note, however, that whereas Kaldor's saving behavior depends upon the income source, Pasinetti's depends, instead, upon the income class. As a simple generalization, a model with three distinct saving propensities, each of which is associated with a different income claim, will be considered. Denote them by sww, spw, and spc, where the first subscripts refer to the income source, and the second subscripts to the income class. It is assumed that 0≤sww≤spw≤ spc≤1, and that each s is constant. A derivation of the equation for aggregate savings is illustrated, after which both the Kaldor and Pasinetti formulations, among others, can now be taken to be special cases of the generalized model.
- Subjects
ECONOMIC models; PROFIT; INCOME distribution; SAVINGS; ECONOMICS
- Publication
Economica, 1973, Vol 40, Issue 159, p311
- ISSN
0013-0427
- Publication type
Article
- DOI
10.2307/2552802