Pasinetti and Dual Equilibria in a Post-Keynesian Model of Growth and Institutional Distribution
Author(s)
Commendatore, Pasquale
Abstract
The post Keynesian theory of growth and distribution is extended to a corporate economy. It is shown that the rate of profits and the distribution between profits and wages are influenced by the behavioral parameters of shareholders and firms, such as the degree of indifference between dividends and capital gains and the retention ratio, and by long-lasting stock market imperfections. What has been obtained in previous analyses such as O’Connell (1985,1995) are special cases of these results. The conditions for the existence of what are known in the literature as Pasinetti and dual equilibria are also investigated.
