Growth and Distribution: Second Edition

Cover
Title Page
Copyright
Dedication
Contents
Preface to the Second Edition
Preface to the First Edition
Notation
1. Introduction
	1.1 Economic Growth in Historical Perspective
	1.2 Quality and Quantity
	1.3 Human Relationships
	1.4 Economic Theories of Growth
	1.5 Using This Book
	1.6 Suggested Readings
2. Measuring Growth and Distribution
	2.1 Measuring Output and Inputs
	2.2 Time and Production
	2.3 A Note on Units
	2.4 Technology in the Real World
	2.5 The Uses of Output: Investment and Consumption
	2.6 The Social Consumption-Growth Rate Schedule
	2.7 The Distribution of Income: Wages and Profit
	2.8 The Real Wage-Profit Rate Schedule
	2.9 Income Shares
	2.10 The Growth-Distribution Schedule
	2.11 Changes in Labor and Capital Productivity
	2.12 Comparing Economies
	2.13 Global Economic Leadership
	2.14 Labor Productivity Growth in Real Economies
	2.15 Stylized Facts
	2.16 Suggested Readings
3. Models of Production
	3.1 Accounting Frameworks and Explanatory Models
	3.2 A Model of Production
	3.3 Agents and Distribution
	3.4 Social Accounting Matrix
	3.5 Choice of Technique and Production Functions
	3.6 Particular Production Functions
	3.7 Classifying Technical Change
	3.8 Two-Sector Growth-Distribution Schedules
	3.9 Models of Production and Models of Growth
	3.10 Suggested Readings
4. The Labor Market
	4.1 Models of Economic Growth
	4.2 Demand for Labor
	4.3 The Classical Conventional Wage Model
	4.4 The Neoclassical Full Employment Model
	4.5 Toward a Model of Economic Growth
	4.6 Growth in Real Economies
	4.7 Suggested Readings
5. Models of Consumption and Saving
	5.1 A Two-Period Consumption-Saving Model
	5.2 An Infinite-Horizon Model
	5.3 The Constant Saving Rate Model
	5.4 Saving Rates and Growth Rates
	5.5 Suggested Readings
6. Classical Models of Economic Growth
	6.1 The Classical Conventional Wage Model
	6.2 Comparative Dynamics in the Conventional Wage Model
	6.3 Labor-Saving Technical Change in the Classical Model
	6.4 Choice of Technique in the Classical Model
	6.5 A Classical Model of Growth with Full Employment
	6.6 Choice of Technique in the Classical Full Employment Model
	6.7 Growth and Cycles
	6.8 The Classical Approach to Growth
	6.9 Suggested Readings
7. Induced Technical Change, Growth, and Cycles
	7.1 The Induced Invention Hypothesis
	7.2 Induced Technical Change in the Classical Full Employment Model
	7.3 Growth Cycles with Induced Technical Change
	7.4 Comparative Dynamics
	7.5 Conclusions
	7.6 Suggested Readings
8. Biased Technical Change in the Classical Model
	8.1 The Classical Conventional Wage Share Model with Biased Technical Change
	8.2 Viability of Technical Change
	8.3 Biased Technical Change and the Fossil Production Function
	8.4 The Classical Full Employment Model with Marx-Biased Technical Change
	8.5 Reverse Marx-Biased Technical Change
	8.6 One Vision of Economic Growth
	8.7 Suggested Readings
9. Endogenous Technical Change
	9.1 Technical Change in a Capitalist Economy
	9.2 Learning by Doing
	9.3 R&D Investment in Technical Change
	9.4 How Much R&D?
	9.5 Steady State Growth with No Persistent Effects of R&D
	9.6 Steady State Growth with Persistent Effects of R&D
	9.7 Persistent Effects of R&D with a Conventional Wage Share
	9.8 Suggested Readings
10. The Neoclassical Growth Model
	10.1 The Solow–Swan Model
	10.2 The Intensive Production Function
	10.3 Saving, Population, and Steady State Growth
	10.4 The Solow–Swan Model and the Growth-Distribution Schedule
	10.5 The Complete Model
	10.6 Substitution and Distribution
	10.7 Comparative Dynamics
	10.8 Transitional Dynamics
	10.9 Limitations of the Solow–Swan Model
	10.10 Suggested Readings
11. Technical Change in the Neoclassical Model
	11.1 Technical Change and the Production Function
	11.2 The Solow–Swan Model with Harrod-Neutral Technical Change
	11.3 Growth Accounting
	11.4 Classical and Neoclassical Interpretations of the Residual
	11.5 Comparative Dynamics in the Solow–Swan Model
	11.6 Transitional Dynamics in the Solow–Swan Model
	11.7 Suggested Readings
	Appendix: Deriving the Convergence Equation
12. Demand-Constrained Economic Growth
	12.1 The Global Crisis
	12.2 Measuring Demand Shocks
	12.3 Saving, Investment, and Output
	12.4 A Model of Demand-Constrained Growth
	12.5 Equilibrium in the Demand-Constrained Model
	12.6 Comparative Dynamics in the Demand-Constrained Model
	12.7 Profit-Led or Wage-Led Growth?
	12.8 Long Run or Short Run?
	12.9 The Distributive Curve
	12.10 The Keynesian Contribution to Growth Theory
	12.11 Suggested Readings
	Appendix: The Marglin-Bhaduri Model
13. Land-Limited Growth
	13.1 Non-Reproducible Resources
	13.2 Ricardo’s Stationary State
	13.3 Production with Land
	13.4 The Capitalist’s Decision Problem with Land
	13.5 The Arbitrage Principle
	13.6 Equilibrium Conditions
	13.7 The Abundant Land Regime
	13.8 The Scarce Land Regime
	13.9 From the Abundant to the Scarce Land Regime
	13.10 Lessons of the Land-Limited Model
	13.11 Suggested Readings
14. Exhaustible Resources
	14.1 Growth with an Exhaustible Resource
	14.2 Production with an Exhaustible Resource
	14.3 Saving and Portfolio Choice
	14.4 The Growth Path
	14.5 Exhaustible Resources in the Real World
	14.6 Suggested Readings
15. Corporate Capitalism
	15.1 Accounting in the Corporate Capitalist Economy
	15.2 Stocks and the Capitalist Decision Problem
	15.3 Investment-Saving Equilibrium
	15.4 The Corporate Capitalist Model
	15.5 Stock Prices and the Asset Market
	15.6 The Rentier Capitalist Regime
	15.7 The Managerial Capitalist Regime
	15.8 The Hybrid Capitalist Regime
	15.9 Corporate Saving and the Equity Yield
	15.10 Ownership and Control
	15.11 An Application
	15.12 Suggested Readings
16. Government Debt and Social Security: The Overlapping Generations Model
	16.1 Government Finance and Accumulation
	16.2 Government and Private Budget Constraints
	16.3 Saving and Consumption with Selfish Households
	16.4 Accounting in the Overlapping Generations Model
	16.5 A Classical Overlapping Generations Growth Model
	16.6 A Neoclassical Overlapping Generations Growth Model
	16.7 Pareto-Efficiency in the Overlapping Generations Model
	16.8 Analyzing Social Security and Budget Deficits
	16.9 Social Security in the Overlapping Generations Model
	16.10 Government Debt in the Overlapping Generations Model
	16.11 The Lessons of the Overlapping Generations Model
	16.12 Suggested Readings
17. Two-ClassModels ofWealth Accumulation
	17.1 Worker and Capitalist Saving
	17.2 Accounting in the Two-Class Models
	17.3 Accumulation with a Conventional Wage
	17.4 Accumulation in the Full Employment Model
	17.5 Wealth Distribution in the US
	17.6 Conclusions
	17.7 Suggested Readings
	Appendix: Stability in the Full Employment Model
18. Global Warming
	18.1 Global Warming and Economic Growth
	18.2 Production with Greenhouse Gas Emissions
	18.3 Saving and Portfolio Choice
	18.4 The Growth Path with Fossil-Fuel Technology
	18.5 The Growth Path with Solar Technology
	18.6 Coordinated Growth with Global Warming
	18.7 Optimal and BAU Growth Paths
	18.8 Centralized and Decentralized Economic Control
	18.9 Suggested Readings
References
Index