 Rate of Profit and Income Distribution in Relation to the Rate of Economic GrowthL. L. Pasinetti Chapter 14 in Readings in the Theory of Growth, 1971, pp 184-196 from Palgrave Macmillan Abstract: Abstract One of the most exciting results of the macro-economic theories which have recently been elaborated in Cambridge is a very simple relation connecting the rate of profit and the distribution of income to the rate of economic growth, through the inter-action of the different propensities to save. The interesting aspect of this relation is that—by utilizing the Keynesian concepts of income determination by effective demand and of investment as a variable independent of consumption and savings—it gives a neat and modern content to the deep-rooted old Classical idea of a certain connection between distribution of income and capital accumulation. In this sense, it represents a break with the hundred-year-old tradition of marginal theory, and it is no wonder that it has immediately become the target of attacks and eulogies of such strongly emotional character. Approval and rejection have almost invariably coincided with the commentators’ marginalistic or nonmarginalistic view. Keywords: Income Distribution; Capital Accumulation; Natural Rate; Full Employment; Total Profit (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-15430-2_14 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-15430-2_14 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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