A Kaldorian Saving Function in a Two-sectoral Linear Growth Model

  • H. Hagemann


In retrospect, Kaldor saw the fundamental shortcomings of the post-Keynesian growth and distribution models on which he concentrated his analytical work in the 1950s and the early 1960s rooted in the fact that all these models were one-sector models.1 Instead he advocated a two-sectoral model as the basis for gaining a thorough understanding of the nature of the growth and distribution process in a developed capitalist economy. Already the young Kaldor (1938) in a pioneering paper had pointed our attention to the facts that complementarity between equipment and labor is characteristic for modern technique and that full employment not only presupposes a certain level of real income (effective demand) but also a certain composition of production between consumption and capital goods because of the specificity of most equipment.


Income Distribution Natural Rate Full Employment Profit Share Profit Rate 
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© Edward J. Nell and Willi Semmler 1991

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  • H. Hagemann

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