Economics Department Working Paper Series
Title
Economic growth in dual and mature economies: revisiting the Pasinetti and neo-Pasinetti theorems
Working Paper Number
2022-07
Publication Date
2022
Abstract
This paper (i) examines the role of income distribution in the determination of the average saving rate and the growth process in dual and mature economies, and (ii) revisits the Pasinetti and neo-Pasinetti theo- rems. The profit share may influence saving because of differences in the saving rates across households (the Pasinetti theorem) or because firms retain part of their earnings (the neo-Pasinetti theorem). The two mechanisms are not mutually exclusive, and the alignment between warranted and natural growth rates in mature economies can happen through feed- back e¤ects from employment to the distribution of income.
DOI
https://doi.org/10.7275/g3zj-k469
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
License
UMass Amherst Open Access Policy
Recommended Citation
Skott, Peter, "Economic growth in dual and mature economies: revisiting the Pasinetti and neo-Pasinetti theorems" (2022). Economics Department Working Paper Series. 324.
https://doi.org/10.7275/g3zj-k469