We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
Marginal Productivity and the Macro-Economic Theories of Distribution.
- Authors
Kaldor, Nicholas
- Abstract
This article comments on Professor Samuelson and Modigliani essay on macroeconomic theories of distribution which demonstrates, not only the splendid analytical powers of the two authors, but also the intellectual sterility endangered by the methods of Neo-classical Economics. The assumption of Profit Maximization under conditions of Universal Perfect Competition involves the assumption of production functions which are linear-homogeneous and well-behaved. Samuelson and Modigliani assume that any macro-economic theory which makes use of the notion of differences in savings propensities between profits and wages requires an identifiable class of hereditary barons. The means that the rate of capital appreciation of the shares in the hands of the capitalist group is greater than the rate of capital appreciation of the assets in the hands of pension funds.
- Subjects
ECONOMICS; MACROECONOMICS; MARGINAL productivity; NEOCLASSICAL school of economics; LABOR; PROFIT maximization; CAPITAL appreciation; PENSION trusts
- Publication
Review of Economic Studies, 1966, Vol 33, Issue 4, p309
- ISSN
0034-6527
- Publication type
Article
- DOI
10.2307/2974428