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- W3136144573 abstract "This paper deals with issues arising in Solow's growth model when contrasted with Marx's schemes of expanded reproduction. More specifically, we argue that Solow's growth model lacks the crucial dynamic features of capital accumulation derived from the long-term movement of the rate of profit, which are well integrated in classical political economy. Classical economists discussed the attainment of the stationary state of the economy as a result of a falling rate of profit eliminating net investment. In Solow's growth model, however, the seemingly stationary state is proved to be a ‘saddle’ point, an aspect that has not received appropriate attention in the extant economic growth literature. By contrast, in Marx's analysis of absolute overaccumulation resulting from the falling profit rate the system is driven to a turning point and the conditions for major institutional changes that may lead to a new period of economic expansion are set." @default.
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- W3136144573 date "2021-06-01" @default.
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- W3136144573 title "The dynamics of capital accumulation in Marx and Solow" @default.
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- W3136144573 doi "https://doi.org/10.1016/j.strueco.2021.03.003" @default.
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