Abstract
Kaldor put forward his technical progress function as an alternative to the neoclas-
sical aggregate production function. It is shown that Verdoorn’s law is its empirical
counterpart, although allowing for increasing returns to scale. However, both may
be derived from an aggregate Cobb-Douglas production function. But aggregation
problems and the Cambridge capital theory controversies have shown theoretically
that aggregate production functions in all probability do not exist. Moreover, the
only reason that estimations of ‘aggregate production functions’ give good results is
the existence of an accounting identity. This article reconsiders the technical progress
function and Verdoorn’s law, especially in the light of these problems. Nevertheless,
it is shown that estimates of the law do, in fact, provide insights into the growth
process very similar to those of Kaldor, but viewed from another perspective.
Lingua originale | Inglese |
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pagine (da-a) | 1117-1136 |
Numero di pagine | 20 |
Rivista | Cambridge Journal of Economics |
Volume | 40 |
DOI | |
Stato di pubblicazione | Pubblicato - 2015 |
Keywords
- Kaldor
- Verdoorn's law
- accountiong identity critique
- aggregate production functions
- technical progress function