Abstract
Within classical economic analysis, capital accumulation plays a central role. This is true for the founders of Classical economics, such as Ricardo and Marx, and for Classically oriented economists such as Michal Kalecki and Joan Robinson. It is also true that their work makes clear the importance of disaggregated models as an aid to thought. Many phenomena important to capital accumulation — such as income distribution, relative price formation, and the movement of capital between sectors — are either suppressed or summarily treated in one-sector models. Unfortunately for economics, dynamic models can easily prove mathematically intractable. Since even a two-sector case can be hard to handle, many economists see drastic simplification as the only way to results.
An earlier version of this study has been incorporated in my Effective Demand and Income Distribution (1988).
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© 1992 Joseph Halevi, David Laibman and Edward J. Nell
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Jarsulic, M. (1992). Dynamic Behavior in a Two-Sector Classical Model: Some Simulation Results. In: Beyond the Steady State. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-10950-0_13
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DOI: https://doi.org/10.1007/978-1-349-10950-0_13
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