 INCOME DISTRIBUTION AND THE TRADE CYCLE IN THE ‘YEARS OF HIGH THEORY’Cahiers d’économie politique / Papers in Political Economy, 2011, issue 61, 91-112 Abstract: There is a short period, at the eve of the Second World War, where the development of macroeconomic theory pushed imperfect competition to the fore. During this period called by Shackle the ‘years of high theory’, many issues concerning income distribution and the trade cycle were raised. The analysis of this question of the relationship between imperfect competition and income distribution will be our point of departure. In a first section, we review how product imperfections were integrated to the analysis of income distribution. Then, the role played by income distribution effects in the trade cycle theories developed during the thirties are examined in a second section, the first part focusing on Kalecki 1939’s theory based on a linear saving function while the second part is devoted to Kaldor’s 1940 model analysis based on a non-linear saving function. Keywords: Imperfect competition; economic cycle; limit cycle models; Harrod; Keynes; Kalecki; Kaldor (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cpo:journl:y:2011:i:61:p:91-112 Ordering information: This journal article can be ordered from Access Statistics for this article Cahiers d’économie politique / Papers in Political Economy is currently edited by Claire Pignol More articles in Cahiers d’économie politique / Papers in Political Economy from L'Harmattan |
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