Search results for "Pasinetti"
showing 4 items of 4 documents
From endogenous growth to stationary state: The world economy in the mathematical formulation of the Ricardian system
2016
AbstractWe analyse international trade in a Pasinetti–Ricardo growth model in the world economy scenario in which several small trading countries coexist and international commodity prices are determined by the interplay of supply and demand amongst them. We demonstrate that all the trading countries eventually reach the stationary state, though this process is not monotonic and the dynamics of capital and population may actually push some countries towards the stationary state and others away from it. We also use our model to assess an argument which Malthus employed in the second edition of An Essay on the Principle of Population (1803) to support a policy of agricultural protectionism.
The Ricardian system: a graphical exposition
2017
Ever since its publication, Pasinetti’s 1960 paper has been a primary reference for all scholars interested in Ricardian economics. However, Kaldor's 1955-6 diagram is a very effective tool for depicting the salient features of the Ricardian system and its full heuristic potentialities are still under-explored. Accordingly, we give it pride of place in this paper. In what follows, after a brief presentation of a slightly amended version of Kaldor’s original diagram, we show how this diagram may be modified to represent Pasinetti’s two-sector model of a closed economy. Next we use it to analyse alternative consumption patterns. Finally, we employ a variant of Kaldor’s diagram to study a two-…
From stationary state to endogenous growth: International trade in the mathematical formulation of the Ricardian system
2015
In his 1814–15 correspondence with Malthus and in his Essay on Profits, Ricardo championed the free importation of wage goods as a highly effective growth-enhancing policy. In order to capture this aspect in the mathematical formulation of the Ricardian system first introduced by Pasinetti in 1960 in the context of a closed economy, we produce a variant of that model where the economy is a small open one. We show that this economy is characterised by endogenous growth since the growth rate is bounded from below and we locate two thresholds concerning the allocation of labour among the two sectors of the economy and the pattern of international trade.