Kaldor concludes that whenconsidering that his model solely holds in the long run, his assumption oftechnological advances as the driver are true.
However, he points out that theyare not stable, and that the occurrence of a ground-breaking invention is almostcompletely arbitrary. Hence his model will only be stable in the long run. Kaldor distinguishes two stagesof capitalism following a major technological advance.
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The First stage is an accumulation of capitaluntil one has reached the desired level. This is followed by the second stage whereproduction, employment and wages grow. Kaldor distinguishes twocases for his model. Firstly, a constant working population and secondly, an expandingpopulation. For both cases he shows that under his economic model, firstly inthe long run an economy will always converge to a state of full-employment andsecondly, that the main drivers for growth are technological advancements. In his own model that Kaldorconcludes that advancements in technology are the main driver for growth inoutput.
He postulates that any increase in capital per worker is associatedwith some new technology and vice versa. Hence, in the long run any changes inthe production function are to be explained by a technological advancementimplemented or yet to be implemented. In his paper (A Model ofEconomic Growth, published in Dec. 1957 by Wiley, Nicholas) Kaldor modifies theeconomic model of Harrod. He postulates that production factors such as changesin technology are of more importance his predecessors assumed to be. To supportthis, he identifies two factors of production; Labour and Capital as well astwo factors of income; Profit and Wages.
He suggests that the Capital/Outputratio and rate of profits earned investments are constant in the long run. Thisimplicates that in equilibrium an economy will always converge to a state offull employment. Summary:Regarding the quality of his paper, firstly, one can see that as of11-01-18 Kaldor has been cited 2673 times. This however is only an indicator ofpopularity and not quality. Secondly, regarding the amount of citations, hispaper outranks any other regarding the same topic. Thirdly, the fact that theeconomic journal, one with a high reputation for quality, published his paper. Andfinally, throughout his paper Kaldor keeps a clean structure of argumentation andcitations.
All in all, strong indicators for a good scientific paper