@techreport{6cdc640170e14a21a83b2a090a7fb362,
title = "Demand Drives Growth all the Way",
abstract = "A demand-driven alternative to the conventional Solow-Swan growth model is analyzed. Its medium run is built around Marx-Goodwin cycles of demand and distribution. Long-run income and wealth distributions follow rules of accumulation stated by Pasinetti in combination with a technical progress function for labor productivity growth incorporating a Kaldor effect and induced innovation. An explicit steady state solution is presented along with analysis of dynamics. When wage income of capitalist households is introduced, the Samuelson-Modigliani steady state {"}dual{"} to Pasinetti's cannot be stable. Numerical simulation loosely based on US data suggests that the long-run growth rate is around two percent per year and that the capitalist share of wealth may rise from about forty to seventy percent due to positive medium-term feedback of higher wealth inequality into its own growth.",
author = "Lance Taylor and Foley, {Duncan K.} and Armon Rezai",
year = "2018",
month = mar,
day = "1",
doi = "10.57938/6cdc6401-70e1-4a21-a83b-2a090a7fb362",
language = "English",
series = "Ecological Economic Papers",
number = "20",
publisher = "WU Vienna University of Economics and Business",
address = "Austria",
type = "WorkingPaper",
institution = "WU Vienna University of Economics and Business",
}