The political role of the state in Cambridge Theories of growth and distribution

Vol. 27 No. 4 (2007)

Oct-Dec / 2007
Published March 17, 2020
PDF-English
PDF-English

How to Cite

Charles, Sébastien. 2007. “The Political Role of the State in Cambridge Theories of Growth and Distribution”. Brazilian Journal of Political Economy 27 (4):567-74. https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/580.

The political role of the state in Cambridge Theories of growth and distribution

Sébastien Charles
University of Paris 8, Department of Economics (LED-EPEH)
Brazilian Journal of Political Economy, Vol. 27 No. 4 (2007), Oct-Dec / 2007, Pages 567-574

Abstract

In this paper we extend Kaldor’s Neo-Pasinetti theorem to the scope of budgetary interventions based on political orientations. First, we take into account a system of taxes and expenditures. Second, we introduce different reaction functions for public spending showing the political role of the State in Cambridge theory of distribution. It turns out that the validity of Kaldorian results depends on the political orientation adopted by government, which diminishes the range of application of the Neo-Pasinetti theorem.

JEL Classification: E12, E21, E61.


Keywords: Kaldor Budgetary policy Distribution