RECORD
Assessing the practicability of the condition used for dynamic equilibrium in Pasinetti theory of distribution
General Economics · Submitted 12 Apr 2021
abstract compiled · 2026-09-23 · no language-model review
The authors' main claim Implementation of this condition (a) may lead to accumulation of unsaved income, (b) reduces growth of capital, (c)is not practicable and (d) is not warranted.
The compiled record
The paper's own sentences, arranged. Each label is drawn from a closed vocabulary; the number beside it is the probability the classifier gave that label. Numbers in the tables are the authors', checked by code. No sentence in this record was written by a model.
Open the compiled record
The abstract, sentence by sentence
In this note an assessment of the condition \(K_w/K=S_w/S\) is made to interpret its meaning to the Passineti's theory of distribution\cite{pasinetti1962rate}. This condition leads the theory to enforce the result \(s_w\rightarrow0\) as \(P_w\rightarrow 0\), which is the Pasinetti's description about behavior of the workers. We find that the Pasinetti's claim, of long run worker's propensity to save as not influencing the distribution of income between profits and the wage can not be generalized. This claim is found to be valid only when \(W>>P_w\) or \(P_w=0\) with \(W\ne0\). In practice, the Pasinetti's condition imposes a restriction on the actual savings by one of the agents to a lower level compared to its full saving capacity. An implied relationship between the propensities to save by workers and capitalists shows that the Passineti's condition can be practiced only through a contract for a constant value of \(R=s_w/s_c\), to be agreed upon between the workers and the capitalists. It is showed that the Passineti's condition can not be described as a dynamic equilibrium of economic growth. Implementation of this condition (a) may lead to accumulation of unsaved income, (b) reduces growth of capital, (c)is not practicable and (d) is not warranted. We have also presented simple mathematical steps for the derivation of the Pasinetti's final equation compared to those presented in \cite{pasinetti1962rate}
background contribution method result interpretation main claim
| # | sentence | role | the authors' own work | states the main conclusion | strength |
|---|---|---|---|---|---|
| s0 | In this note an assessment of the condition \(K_w/K=S_w/S\) is made to interpret its meaning to the Passineti's theory of distribution\cite{pasinetti1962rate}. | contribution 0.94 | 0.70 | 0.04 | asserted 0.50 |
| s1 | This condition leads the theory to enforce the result \(s_w\rightarrow0\) as \(P_w\rightarrow 0\), which is the Pasinetti's description about behavior of the workers. | result 0.40 | 0.16 | 0.08 | asserted 1.00 |
| s2 | We find that the Pasinetti's claim, of long run worker's propensity to save as not influencing the distribution of income between profits and the wage can not be generalized. | result 0.95 | 0.94 | 0.69 | asserted 1.00 |
| s3 | This claim is found to be valid only when \(W>>P_w\) or \(P_w=0\) with \(W\ne0\). | result 0.94 | 0.86 | 0.23 | asserted 1.00 |
| s4 | In practice, the Pasinetti's condition imposes a restriction on the actual savings by one of the agents to a lower level compared to its full saving capacity. | result 0.64 | 0.84 | 0.13 | asserted 0.98 |
| s5 | An implied relationship between the propensities to save by workers and capitalists shows that the Passineti's condition can be practiced only through a contract for a constant value of \(R=s_w/s_c\), to be agreed upon between the workers and the capitalists. | interpretation 0.58 | 0.85 | 0.13 | asserted 0.92 |
| s6 | It is showed that the Passineti's condition can not be described as a dynamic equilibrium of economic growth. | result 0.89 | 0.89 | 0.42 | asserted 1.00 |
| s7 | Implementation of this condition (a) may lead to accumulation of unsaved income, (b) reduces growth of capital, (c)is not practicable and (d) is not warranted. | result 0.88 | 0.85 | 0.62 | hedged possibility 0.57 |
| s8 | We have also presented simple mathematical steps for the derivation of the Pasinetti's final equation compared to those presented in \cite{pasinetti1962rate} | contribution 0.82 | 0.93 | 0.03 | asserted 0.99 |
What was examined, and what was not
- arXiv listing abstract v1
- full text
- figures and tables
- references and citing sentences
- relations to other papers
- P abstract
- S sections
- T body sentences
- C citations
- R cross-paper relations
The paper
Original abstract
In this note an assessment of the condition \(K_w/K=S_w/S\) is made to interpret its meaning to the Passineti's theory of distribution\cite{pasinetti1962rate}. This condition leads the theory to enforce the result \(s_w\rightarrow0\) as \(P_w\rightarrow 0\), which is the Pasinetti's description about behavior of the workers. We find that the Pasinetti's claim, of long run worker's propensity to save as not influencing the distribution of income between profits and the wage can not be generalized. This claim is found to be valid only when \(W>>P_w\) or \(P_w=0\) with \(W\ne0\). In practice, the Pasinetti's condition imposes a restriction on the actual savings by one of the agents to a lower level compared to its full saving capacity. An implied relationship between the propensities to save by workers and capitalists shows that the Passineti's condition can be practiced only through a contract for a constant value of \(R=s_w/s_c\), to be agreed upon between the workers and the capitalists. It is showed that the Passineti's condition can not be described as a dynamic equilibrium of economic growth. Implementation of this condition (a) may lead to accumulation of unsaved income, (b) reduces growth of capital, (c)is not practicable and (d) is not warranted. We have also presented simple mathematical steps for the derivation of the Pasinetti's final equation compared to those presented in \cite{pasinetti1962rate}
Human review
Discussion
Know something about this paper? Leave a comment, or highlight any passage above to comment on it.