Models of structural change and Kaldor’s facts: Critical survey from the Cambridge Keynesian perspective
Structural Change and Economic Dynamics, 2021, vol. 58, issue C, 267-277
This study addresses the new research agenda of reconciling structural change with Kaldor’s facts. The mainstream economics interprets the facts as a state at which the economy grows along the generalised balanced growth path. Sectors in multi-sectoral models can be aggregated since the specific functions are used. The motions of aggregate variables can be described by the two-dimensional differential system of equations, as in Ramsey’s model, which has the uniquely (saddle-path) stable steady state. We argue that the mainstream strategy is far from Kaldor’s thoughts and has difficulty analysing structural change of heterogeneous capital. When the Cambridge Keynesian perspective based on Pasinetti’s structural dynamics is applied to the reconciliation, we can expect that structural change of heterogeneous capital can be analysed and the need of institutional changes must be followed by structural change to maintain full employment, whereas the mainstream reconciliation is achieved through the market mechanism.
Keywords: Structural change; Kaldor’s facts; Cambridge Keynesians; Pasinetti’s structural economic dynamics; Coordination through institutional changes (search for similar items in EconPapers)
JEL-codes: B24 E12 O14 O41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:58:y:2021:i:c:p:267-277
Access Statistics for this article
Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen
More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().