Endogenous Growth: A Kaldorian Approach

  title={Endogenous Growth: A Kaldorian Approach},
  author={Mark Setterfield},
  journal={Economic Growth eJournal},
This paper explores the Kaldorian approach to endogenous growth theory. The central principles of this approach are explored, including the claims that growth is: (a) demand-led, with trade playing a central role in aggregate demand formation; and (b) path-dependent. It is shown that both the actual and natural rates of growth are path dependent in the Kaldorian tradition. The implications of inequality between the actual and natural rates of growth are investigated, and it is shown that… Expand
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