L. L. Pasinetti: When Workers Save
Kaldor’s basic distributional formulae, upon which his distribution theory rests, were corrected for certain omissions in a 1962 paper1 by Luigi Pasinetti. Pasinetti pointed out that, although Kaldor had made allowance for workers’ savings in his equations, he had not extended to them the possibility of purchasing capital with their savings, nor analysed the effects of the income the workers might receive from owning assets. After making the appropriate alterations, Pasinetti concluded that Kaldor’s results were valid, irrespective of the savings of workers.
KeywordsReal Wage Physical Capital Total Profit Income Class Wage Income
Unable to display preview. Download preview PDF.