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-sector model of an open economy. In a first stage, we study a small open economy facing given international commodity prices; in a second stage, we study the world economy in which international trade takes place among several small open economies.
The Ricardian system: a graphical exposition
Salvadori Neri;
2017-01-01
Abstract
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-sector model of an open economy. In a first stage, we study a small open economy facing given international commodity prices; in a second stage, we study the world economy in which international trade takes place among several small open economies.File in questo prodotto:
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