Table Of ContentBEYOND THE STEADY STATE
Also by David Laibman
VALUE, TECHNICAL CHANGE AND CRISIS: Explorations in Marxist Economic
Theory
Also by Edward J. Nell
FREE MARKET CONSERVATISM: A Critique of Theory and Practice
GROWTH, PROmS AND PROSPERITY
KEYNES AFTER SRAFFA
NICHOLAS KALDOR AND MAINSTREAM ECONOMICS (co·editor with Willi
Semmler)
RATIONAL ECONOMIC MAN (with Martin Hollis)
PROSPERITY AND PUBLIC SPENDING: Transfonnational Growth and the Role of the
State
TRANSFORMATIONAL GROWTH AND EFFECTIVE DEMAND: Economics after the
Capital Critique
Beyond the Steady State
A Revival of Growth Theory
Joseph Halevi
Senior Lecturer in Economics
University of Sydney, Australia
David Laibman
Professor of Economics
Brooklyn College and Graduate School
City University of New York
and
Edward J. Nell
Professor of Economics
New School for Social Research, New York
Palgrave Macmillan
© Joseph Halevi, David Laibman and Edward J. Nell, 1992
Softcover reprint of the hardcover 1s t edition 1992
All rights reserved. For information, write:
Scholarly and Reference Division,
St. Martin's Press, Inc., 175 Fifth Avenue,
New York, N.Y. 10010
First published in the United States of America in 1992
ISBN 978-1-349-10952-4 ISBN 978-1-349-10950-0 (eBook)
DOI 10.1007/978-1-349-10950-0
Library of Congress Cataloging-in-Publication Data
Beyond the steady state: a revival of growth theory/edited by
Joseph Halevi, David Laibman, and Edward J. Nell.
p. cm.
Includes index.
ISBN 978-0-312-06505-8
1. Economic development. 2. Demand (Economic theory).
3. Equilibrium (Economics) I. Halevi, Joseph. II. Laibman, David.
III. Nell, Edward J.
HD75.B5 1992
338.9'OOI-dc20 91-10319
CIP
Contents
Preface and Acknowledgements vii
~~~~~~~ ~
Introduction 1
PART I AN OVERVIEW 9
1 The Classical Dynamics of Surplus and Accumulation 11
Vivian Walsh
PART II DEMAND-DETERMINED GROWTH 45
2 Some Notes for an Analysis of Accumulation 47
Pierangelo Garegnani
3 Accumulation, Effective Demand and Income
Distribution 73
Heinz D. Kurz
4 Demand Equilibrium 96
Edward J. Nell
PART III TECHNICAL CHANGE 129
5 Transformational Growth, Mass Production and the
Multiplier 131
Edward Nell
6 Optimal Choices of Technique and Biased Technical
Change: From the Steady State to the Consistent Path 175
David Laibman
7 Classical Competitive Dynamics and Technical Change 198
Peter Flaschel and Willi Semmler
PART IV TRAVERSE 223
8 An Introduction to the Traverse in Economic Theory 225
Joseph Halevi and Peter Kriesler
v
vi Contents
9 Traverse Analysis in a Post-Classical Model 235
Harald Hagemann
10 Accumulation and Structural Disequilibrium 264
Joseph Halevi
PART V GROWTH CYCLES 289
11 A Dynamic Analysis of Industrial Capitalism 291
Richard M. Goodwin
12 Dynamic Behavior in a Two-Sector Classical Model:
Some Simulation Results 302
Marc Jarsulic
13 Cyclical Growth and Intersectoral Dynamics: A
Simulation Approach 323
David Laibman
14 Bifurcation in the Theory of Economic Growth 349
Badal Mukherji
Index 367
Preface and
Acknowledgements
This book began from two related questions. Where do we go from
the Cambridge criticism? How can we bridge the gap between the
static equilibrium of mainstream theory and the inherent dynamism
of the real world and its problems? The connection is straightfor
ward: if neo-Classical theory is logically flawed, alternative theoreti
cal approaches will be required. If the flaw arises from a preoccupation
with competition between abstract individuals (bereft of social rela
tions), the theory will be unsuited to study of a world in which
economic growth is inherently transformational - and therefore
beyond the grasp of methods based on equilibrium.
In bringing together a volume that aims to avoid the trap of the
steady state, we naturally thought to dedicate our work to Adolph
Lowe, a great pioneer in this effort. While not a 'celebratory'
festschrift, this book - especially the section on the traverse - bears
the stamp of his teaching and inspiration.
We have assembled a truly world-wide team of contributors who
address different aspects of this huge project. The chapters are all
original contributions, written for this volume and with its goals in
mind. Some of the participants were able to explore the project in
statu nascendi at a conference held at the University of Ottawa in
March, 1987. We are grateful to all who took part in that conference
for valuable feedback and criticism.
We would particularly like to mention Tom Asiroakopulos and
Jacques Henry. Both were enthusiastic colleagues in this endeavor at
the outset, and both, sadly, are no longer with us; neither was able to
prepare a contribution, but we would like to acknowledge their
lasting influence.
Our thanks go to Cigdem Kurdas, who worked cheerfully with a
very rough draft from one of the authors, bringing its contents into
clear view. In spite of her efforts the book was delayed still further by
extensive additional rewriting, and we apologize to all but one of our
authors. Our copy-editor, Mr Keith Povey, is truly a miracle worker,
and a tireless one at that. His efforts are a permanent part of this
book.
No one is more aware than we that the project begun here is
vii
viii Preface and Acknowledgements
unfinished, and raises more questions than it answers. That is as it
should be. The economic universe is both expanding, and changing;
we expect that our theory must do likewise. If this book encourages
any of our readers to help this process along, we will have achieved
our object.
JOSEPH HALEVI
DAVID LAIBMAN
EDWARD J. NELL
List of the Contributors
Peter Flaschel, University of Bielefeld, Germany
Pierangelo Garegnani, University of Rome, Italy
Richard M. Goodwin, Cambridge University, England, and Univer
sity of Siena, Italy
Harald Hagemann, University of Hohenheim, Stuttgart, Germany
Joseph Halevi, University of Sydney, Australia
Marc Jarsulic, University of Notre Dame, Indiana, USA
Peter Kriesler, University of New South Wales, Australia
Heinz D. Kurz, University of Graz, Austria
David Laibman, Brooklyn College and Graduate School, City Uni
versity of New York, USA
Badal Mukherji, Delhi School of Economics, India
Edward J. Nell, Graduate Faculty, New School for Social Research,
New York, USA
Willi Semmler, Graduate Faculty, New School for Social Research,
New York, USA
Vivian Walsh, Muhlenberg College, Pennsylvania, USA
ix
