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- Title
Class Behaviour and the Distribution of Wealth.
- Authors
Vaughan, R.N.
- Abstract
In this paper we propose to consider problems of growth and distribution in which the behaviour of individuals is conditioned by their class. The study of such problems within the framework of modern growth theory may be seen to have been initiated by Pasinetti (1962), inspiration being derived from an earlier work by Kaldor (1955); this led to an interchange on the class model with papers by Kaldor (1966), Pasinetti (1966b), Robinson (1966) and Samuelson ad Modigiliani (1966), early contributors to the debate being also Meade (1963), and Sato (1966). A major interest of these authors was in the investigation of the relationship between the steady state rate of profit and the saving propensities of the two social classes, the "capitalists" and the "workers"; we may not in particular the interchange of Pasinetti and Samuelson and Modigliani (SM). Pasinetti assumed identifiable classes of individuals who received different factor payments, and the capitalists class who receive notable results, viz. that the steady state rate of interest is independent of the workers' savings propensity, as is the steady state output-capital ration and the share of income going to capital. However, SM's analysis culminated in the proof of a "dual" solution in which not the Pasinetti, but the traditional (i.e. Solow (1956)) results of growth theory hold.
- Subjects
WEALTH; EMPLOYEES; FINANCE; INVESTORS; SOCIAL classes; CLASS identity; MACROECONOMICS; ECONOMETRIC models; SOCIOECONOMICS; PERSONAL finance; SOCIOLOGY
- Publication
Review of Economic Studies, 1979, Vol 46, Issue 3, p447
- ISSN
0034-6527
- Publication type
Article
- DOI
10.2307/2297013