Increasing Returns and the Verdoorn Law from a Kaldorian Perspective

  • John McCombie

Abstract

It is somewhat ironical that without Kaldor’s celebrated inaugural lecture of 1966 the widespread use of the term ‘Verdoorn’s Law’ (Verdoorn, 1949) to describe the relationship between productivity and output growth may never have come to pass. Moreover, Verdoorn himself made no further major contribution after his seminal 1949 paper to the extensive literature that has developed concerning the law. Indeed, the main impetus for the subsequent revival of interest in the law ironically may be traced back to Rowthorn’s (1975a) critique of Kaldor’s specification of the law. Verdoorn’s (1980) only other notable article was to reinterpret the law within a neoclassical framework and simultaneously to distance himself from it.2,3

Keywords

Productivity Growth Capital Stock Total Factor Productivity Technical Progress Indifference Curve 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© John McCombie 2002

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  • John McCombie

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