This paper deals with the analysis of growth and development Nicholas Kaldor formulated in the later part of his career, during the 1970s and 1980s. Kaldor’s passage from a resource-constrained to a demand-driven conception of growth was closely connected to his persistent effort to make economic theory more realistic and relevant, and led him to a complex vision of the growth process, with historical and institutional factors playing a fundamental role. However, the particular formulation in which Kaldor expressed his ideas about the strategic role of exports in the growth process, namely the long-period foreign trade multiplier, cannot fully capture the main characteristics of his vision of the growth process, and is in some respects contradictory with that vision. A critical role is played by Kaldor’s conception of the determinants of investment, which, as in his full-employment growth models, he treats as entirely induced by output growth, and hence as not posing limits, in normal conditions, on output expansion.
Palumbo, A. (2009). Adjusting Theory to Reality: The Role of Aggregate Demand in Kaldor's Late Contributions on Economic Growth. REVIEW OF POLITICAL ECONOMY, 21(3), 341-368 [10.1080/09538250903073362].
Titolo: | Adjusting Theory to Reality: The Role of Aggregate Demand in Kaldor's Late Contributions on Economic Growth | |
Autori: | ||
Data di pubblicazione: | 2009 | |
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Citazione: | Palumbo, A. (2009). Adjusting Theory to Reality: The Role of Aggregate Demand in Kaldor's Late Contributions on Economic Growth. REVIEW OF POLITICAL ECONOMY, 21(3), 341-368 [10.1080/09538250903073362]. | |
Abstract: | This paper deals with the analysis of growth and development Nicholas Kaldor formulated in the later part of his career, during the 1970s and 1980s. Kaldor’s passage from a resource-constrained to a demand-driven conception of growth was closely connected to his persistent effort to make economic theory more realistic and relevant, and led him to a complex vision of the growth process, with historical and institutional factors playing a fundamental role. However, the particular formulation in which Kaldor expressed his ideas about the strategic role of exports in the growth process, namely the long-period foreign trade multiplier, cannot fully capture the main characteristics of his vision of the growth process, and is in some respects contradictory with that vision. A critical role is played by Kaldor’s conception of the determinants of investment, which, as in his full-employment growth models, he treats as entirely induced by output growth, and hence as not posing limits, in normal conditions, on output expansion. | |
Handle: | http://hdl.handle.net/11590/142419 | |
Appare nelle tipologie: | 1.1 Articolo in rivista |