Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Sraffian Resolution of the Pasinetti Paradox


Affiliations
1 Gokhale Institute of Politics and Economics, BMCC Road, Pune 411004, India
     

   Subscribe/Renew Journal


This paper investigates the Cambridge equation of growth and distribution from the standpoint of the theory of value. It is shown that the equation continues to hold good in a generalized form and its paradoxical aspect, viz., its invariance to workers’ consumption and saving behaviour stands eliminated. Results of this kind strengthen the possibility that Keynesian theory could provide stronger foundations for the theory of income distribution than marginal productivities of factors.
Subscription Login to verify subscription
User
Notifications
Font Size

  • Kaldor, N. (1956), Alternative Theories of Distribution, Review of Economic Studies, 23: 83-100.
  • Neumann, J. Von (1945), A Model of General Economic Equilibrium, Review of Economic Studies, 13: 1-9.
  • Pasinetti, L. (1962), Rate of Profit and Income Distribution in Relation to the Rate of Economic Growth, Review of Economic Studies, 29: 267-279.
  • Samuelson, P. and F. Modigliani (1966), The Pasinetti Paradox in Neoclassical and More General Models, Review of Economic Studies, 33: 321-330.
  • Sraffa, P. (1960), Production of Commodities by Means of Commodities, Cambridge, Cambridge Press.
  • Tobin, J. (1960), Towards a General Kaldorian Theory of Distribution, Review of Economic Studies, 27: 147-150.

Abstract Views: 509

PDF Views: 1




  • Sraffian Resolution of the Pasinetti Paradox

Abstract Views: 509  |  PDF Views: 1

Authors

Rajas Parchure
Gokhale Institute of Politics and Economics, BMCC Road, Pune 411004, India

Abstract


This paper investigates the Cambridge equation of growth and distribution from the standpoint of the theory of value. It is shown that the equation continues to hold good in a generalized form and its paradoxical aspect, viz., its invariance to workers’ consumption and saving behaviour stands eliminated. Results of this kind strengthen the possibility that Keynesian theory could provide stronger foundations for the theory of income distribution than marginal productivities of factors.

References





DOI: https://doi.org/10.21648/arthavij%2F2017%2Fv59%2Fi4%2F170801