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A Pasinettian Amend to Growth and Distribution in an Open Economy
Author(s) -
Teixeira Joanílio Rodolpho,
Araújo Jorge Thompson
Publication year - 1997
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/1467-999x.00029
Subject(s) - generality , economics , distribution (mathematics) , open economy , small open economy , microeconomics , economy , macroeconomics , mathematics , management , exchange rate , mathematical analysis
We show that Pasinetti's insight into the relationship between the equilibrium rate of profits, the capitalists' saving ratio and the natural growth rate can be extended beyond the original formulations for a closed economy. This result does not depend on a particular hypothesis about the ownership of foreign assets and thus is of great generality.