Abstract
The link between profitability and growth is explored by means of an alternative explanation suggested by standard neoclassical theory of the firm. The growth model developed clarifies the relationships between the real wage rate, the rate of profit, taxation and savings behavior and the rate of growth.
I wish to thank Hans Söderström for his critical comments, and Alain Nairay and participants in the conference for helpful discussions.
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© 1983 The Scandinavian Journal of Economics
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Kouri, P.J.K. (1983). Profitability and Growth. In: Calmfors, L. (eds) Long-Run Effects of Short-Run Stabilization Policy. Scandinavian Journal of Economics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-06349-9_14
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DOI: https://doi.org/10.1007/978-1-349-06349-9_14
Publisher Name: Palgrave Macmillan, London
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