Endogenous Growth: A Kaldorian Approach

Mark Setterfield

No 1001, Working Papers from Trinity College, Department of Economics

Abstract: This chapter explores the Kaldorian approach to endogenous growth theory. The central principles of this approach are explored, including the claims that growth is: (a) demandled, with trade playing a central role in aggregate demand formation; and (b) pathdependent. It is shown that both the actual and natural rates of growth are path dependent in the Kaldorian tradition. The implications of inequality between the actual and natural rates of growth are investigated, and it is shown that mechanisms exist within the Kaldorian tradition that are capable of reconciling these growth rates. This results in the sustainability (in principle) of any particular equilibrium value of the actual rate of growth.

Keywords: endogenous growth; Kaldor; path dependence; demand-led growth; technical change; institutions; natural rate of growth (search for similar items in EconPapers)
JEL-codes: E12 O31 O41 O43 O47 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2010-03
New Economics Papers: this item is included in nep-dev, nep-fdg and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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http://www3.trincoll.edu/repec/WorkingPapers2010/wp10-01.pdf First version, 2010 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:tri:wpaper:1001

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