On the Neoclassical and Kaldorian Perspectives
International Journal of Research in Commerce, Economics & Management, Vol. 6, No. 3, pp. 94-98, 2016
18 Pages Posted: 13 Jun 2016 Last revised: 29 May 2017
Date Written: 2016
This study proposes a testing procedure for neoclassical and Kaldorian perspectives to analyze sources of growth. If the Solow model is valid, then supply-side implications will be important. However, if the Kaldor model is valid, then it means that both supply-side and demand-side explanations matter. Besides, Kaldorian perspective also points out analyzing the endogeneity of the natural rate of growth and its sources. This analysis implies demand-side macroeconomic policies in order to influence or control possible relations among technological progress, labour force and labour productivity.
Keywords: Sources of Growth, Endogeneity of Natural Rate of Growth, Solow, Kaldor
JEL Classification: O40, O49
Suggested Citation: Suggested Citation