Economic growth from a Kaldorian perspective: theory, evidence and agenda

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Universidade Federal de Minas Gerais

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Artigo de periódico

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Membros da banca

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This paper presents a literature review of the Kaldorian literature, which identifies three important gaps, or areas for future research. Firstly, the determinants of the magnitude of the key parameters of Kaldor‐Verdoorn’s Law (the Verdoorn coefficient) and of Thirlwall’s Law (the income elasticities) have not been fully understood. Secondly, the fact that cumulative causation works through price competitiveness in the Kaldor‐Dixon‐Thirlwall model represents an important limitation of the model, which has not yet been solved. Thirdly, sectoral differences have not been fully explored in Kaldorian theory. The review indicates that, in the first two research areas, exploring the effects of additional variables could help clarify what determines the magnitudes of the parameters, as have been sought by the works that combine Kaldorian and Schumpeterian insights, indicating also new channels through which cumulative causation could work. Finally, the last issue requires more attention to similarities and differences between manufacturing sectors, as well as exploring more carefully how sectoral dynamics work.

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Desenvolvimento econômico, Macroeconomia

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Kaldorian growth models, Economic growth, Thirlwall's law, Verdoorn's law

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https://www.braziliankeynesianreview.org/BKR/article/view/55/65

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