Abstract
With this inquiry, we seek to develop a disaggregated version of the post-Keynesian approach to economic growth, by showing that indeed it can be treated as a particular case of the Pasinettian model of structural change and economic expansion. By relying upon vertical integration it becomes possible to carry out the analysis initiated by Kaldor (1956)KALDOR, N. A model of economic growth. Economic Journal LXVII: 591-624, 1957. and Robinson (1956ROBINSON, J. The Accumulation of Capital. London: Macmillan, 1956., 1962)ROBINSON, J. Essays in the Theory of Economics Growth, London, Macmillan, 1962., and followed by Dutt (1984)DUTT, A. Stagnation, income distribution and monopoly power. Cambridge Journal of Economics 8, 25 - 40, 1984., Rowthorn (1982)ROWTHORN, R. Demand, Real Wages and Economic Growth, Studi Economici, no. 18, 1982. and later Bhaduri and Marglin (1990)BHADURI, A. and MARGLIN, S. Unemployment and the real wage: the economic basis for contesting political ideologies. Cambridge Journal of Economics, 14 (4), 375- 93, 1990. in a multi-sectoral model in which demand and productivity increase at different paces in each sector. By adopting this approach it is possible to show that the structural economic dynamics is conditioned not only to patterns of evolving demand and diffusion of technological progress but also to the distributive features of the economy, which can give rise to different regimes of economic growth. Besides, we find it possible to determine the natural rate of profit that makes the mark-up rate to be constant over time.
Keywords
Post-Keynesian growth model; Structural change; Multi-sector models
