TY - JOUR
T1 - Models of structural change and Kaldor's facts
T2 - Critical survey from the Cambridge Keynesian perspective
AU - Kurose, Kazuhiro
N1 - Funding Information:
This paper was presented at the 2015 International Conference on Economic Theory and Policy at Meiji University, the Japan Association for Evolutionary Economics and the seminar at Kyoto University in 2016, and the 30th EAEPE (the European Association for Evolutionary Political Economy) annual conference in Nice in 2018. The author thanks all the participants, especially Roberto Ciccone and Antonio D’Agata, for their valuable comments. He is grateful to Takao Sasaki and Naoki Yoshihara for useful discussions and encouragement. Moreover, he would like to thank Roberto Scazzieri (managing editor) and the two anonymous referees for their helpful comments and suggestions. All remaining errors are solely the author’s responsibility. This work was supported by KAKENHI (grant numbers 26380284 and 17K03615).
Funding Information:
This paper was presented at the 2015 International Conference on Economic Theory and Policy at Meiji University, the Japan Association for Evolutionary Economics and the seminar at Kyoto University in 2016, and the 30th EAEPE (the European Association for Evolutionary Political Economy) annual conference in Nice in 2018. The author thanks all the participants, especially Roberto Ciccone and Antonio D'Agata, for their valuable comments. He is grateful to Takao Sasaki and Naoki Yoshihara for useful discussions and encouragement. Moreover, he would like to thank Roberto Scazzieri (managing editor) and the two anonymous referees for their helpful comments and suggestions. All remaining errors are solely the author's responsibility. This work was supported by KAKENHI (grant numbers 26380284 and 17K03615).
Publisher Copyright:
© 2021 Elsevier B.V.
PY - 2021/9
Y1 - 2021/9
N2 - This study addresses the new research agenda of reconciling structural change with Kaldor's facts. The mainstream economics interprets the facts as a state at which the economy grows along the generalised balanced growth path. Sectors in multi-sectoral models can be aggregated since the specific functions are used. The motions of aggregate variables can be described by the two-dimensional differential system of equations, as in Ramsey's model, which has the uniquely (saddle-path) stable steady state. We argue that the mainstream strategy is far from Kaldor's thoughts and has difficulty analysing structural change of heterogeneous capital. When the Cambridge Keynesian perspective based on Pasinetti's structural dynamics is applied to the reconciliation, we can expect that structural change of heterogeneous capital can be analysed and the need of institutional changes must be followed by structural change to maintain full employment, whereas the mainstream reconciliation is achieved through the market mechanism.
AB - This study addresses the new research agenda of reconciling structural change with Kaldor's facts. The mainstream economics interprets the facts as a state at which the economy grows along the generalised balanced growth path. Sectors in multi-sectoral models can be aggregated since the specific functions are used. The motions of aggregate variables can be described by the two-dimensional differential system of equations, as in Ramsey's model, which has the uniquely (saddle-path) stable steady state. We argue that the mainstream strategy is far from Kaldor's thoughts and has difficulty analysing structural change of heterogeneous capital. When the Cambridge Keynesian perspective based on Pasinetti's structural dynamics is applied to the reconciliation, we can expect that structural change of heterogeneous capital can be analysed and the need of institutional changes must be followed by structural change to maintain full employment, whereas the mainstream reconciliation is achieved through the market mechanism.
KW - Cambridge Keynesians
KW - Coordination through institutional changes
KW - Kaldor's facts
KW - Pasinetti's structural economic dynamics
KW - Structural change
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U2 - 10.1016/j.strueco.2021.05.010
DO - 10.1016/j.strueco.2021.05.010
M3 - Article
AN - SCOPUS:85109421397
VL - 58
SP - 267
EP - 277
JO - Structural Change and Economic Dynamics
JF - Structural Change and Economic Dynamics
SN - 0954-349X
ER -
