Full text: Distribution and Growth

Distribution and Growth. 
1. The long-term development. 
I want to talk on the relation of distribution and growth. 
Before I come to this subject, I should like, however, to 
discuss the nature of long-term development. This will be 
regarded as a process. The problem is that the impelling forces 
of this development to a large extent lie outside a narrowly 
conceived economic world: They are exogenous to it. History, 
especially in form of the evolution of technology, dominates 
the economic development; without outside stimulus, according 
to our usual economic models, the development would cease. 
Yet we feel, rightly, that the relations ordinarily conceived 
wages, the multiplier etc. 
also play their role in the long-run development. The trend, 
as Kalecki said, is created by a semi-autonomous force. How 
does this translate into more concrete terms? 
If we add to an equation describing the business cycle (a 
functional equation) on the right hand side an exponential 
term or any function of time, we shall have solved the problem 
of long-term development by force, as it were. This is the 
purely exogenous solution; the development is imposed from 
outside.
	        

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