1 The steadiness in the share of wages implies, of course, a rate of increase in real wages that is proportionate to the rate of growth of (average) productivity. (ii) Kaldor assumes that the saving rate remains fixed. But assuming so he ignores the effects of 'Life-Cycle' on savings and work. Based on the assumptions of the neo-Keynesian distribution theory and using an information-theoretic approach this paper derives the distribution of income between income units. All during his life, Nicholas Kaldor touched and investigated an impressive number of areas within economic analysis. Every economist knows his path breaking papers on speculation, non-linear models of the business cycle, his alternative theory of distribution, and so many other topics on taxation and economic and monetary policy. Relevant Articles: » You have printed the following article: Alternative Theories of Distribution Nicholas Kaldor The Review of Economic Studies, Vol. Nicholas Kaldor; Alternative Theories of Distribution, The Review of Economic Studies, Volume 23, Issue 2, 1 January 1955, Pages 83–100, https://doi.org/10.230 His work is inspired by Keynes’ contributions in A Treatise on Money, and by Kalecki. (iii) Kaldor model fails to describe that behavioral mechanism which could tell that distribution of income will be such like that the steady growth is automatically attained. In an economy stratified into workers and capitalists, Kaldor … Harcourt (2006, p. 6) observes that Kaldor’s theory of distribution is “a good reference point [for the reconstruction of the post-Keynesian (1955 - 1956), pp. Kaldor presents his analysis of distribution as a Keynesian theory. He developed the famous “compensation” criteria called Kaldor-Hicks efficiency for welfare comparisons, derived the famous cobweb model and argued that there were certain regularities that are observable as far as economic growth is … 2. Kaldor's distribution theory Starting with the work of Maneschi (1974), the compatibility of a two-class economy with the neo-Keynesian growth and distribution theory of Nicholas Kaldor (1956) has been closely scrutinized. 83-100. Abstract. Simply stated, in his model an inadequate rate of investment will be offset by shifts in the distribution of income between profits and wages, which will cause consumption to change in a… This makes it possible for the theory of functional distribution to handle more complicated social relations and savings behavior. 23, No. Kaldor's Neo-Pasinetti Model and Cambridge Theory of Distribution FIG.1 Although Davidson's criticism has not adequately taken into account the fact that both the rate of profits and the rate of interest (or the valuation ratio) act to clear the product and the securities markets simultaneously (cf.Rimmer, 1993,pp. Other articles where Nicholas Kaldor is discussed: economic growth: Demand and supply: The British economist N. Kaldor assumed that there is a mechanism at work generating full employment. Kaldor-Capital Accumulation and Economic Growth able) short period fluctuations of these magnitudes. Kaldor’s model of economic growth. Nicholas Kaldor, Baron Kaldor was one of the foremost Cambridge economists in the post-war period. Kaldor’s macroeconomics in relatively few pages, with particular reference to his theory of income distribution and economic growth and with relatively little attention to his monetary theory.
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