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THE KALDOR‐PASINETTI PROCESS RECONSIDERED (*)
Author(s) -
Teixeira Joanilio R.
Publication year - 1991
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/j.1467-999x.1991.tb00371.x
Subject(s) - economics , capital (architecture) , government (linguistics) , stock (firearms) , macroeconomics , keynesian economics , mechanical engineering , philosophy , linguistics , archaeology , engineering , history
In this pape we extend Pasinetti's model in two ways: (i) taking into account both direct and indirect taxation we allow the government to own explicitly part of the capital stock and to get profits; (ii) opening the economy to international trade and allowing a non‐zero current/capital account balance. We show that such extensions do not violate the essential features of the Cambridge result, provided that the external rate of savings is not affected by some kind of interest rate.