Structural Dynamics and Economic Growth

EDITORS:
Richard Arena, Université de Nice, Sophia Antipolis
Pier Luigi Porta, Università degli Studi di Milano-Bicocca



Ever since Adam Smith, economists have been preoccupied with the puzzle of economic growth. The standard mainstream models of economic growth were and often still are based either on assumptions of diminishing returns on capital with technological innovation or on endogenous dynamics combined with a corresponding technological and institutional setting. An alternative model of economic growth emerged from the Cambridge School of Keynesian economists in the 1950s and 1960s. This model - developed mainly by Luigi Pasinetti - emphasizes the importance of demand, human learning and the growth dynamics of industrial systems. Finally, in the past decade, new mainstream models have emerged incorporating technology or demand-based structural change and extending the notion of balanced growth. This collection of essays reassesses Pasinetti's theory of structural dynamics in the context of these recent developments, with contributions from economists writing in both the mainstream and the Cambridge Keynesian traditions and including Luigi Pasinetti, William Baumol, Geoffrey Harcourt and Nobel laureate Robert Solow.

• Proposes and evaluates a post-Keynesian alternative to the dominant neo-classical models of economic growth
• Focuses on structural dynamics and responds to the need for bringing together related strands on learning and innovation as the sources of structural change
• Explores different paradigms of economic dynamics and discusses their respective historical roots

Table of Contents

List of figures
List of tables
List of contributors
Introduction: structural economic dynamics and contemporary growth theory Richard Arena and Pier Luigi Porta

Part I. Structural Dynamics: Past and Present:
1. Structural change: some historical aspects with special reference to classical economics Peter Groenewegen
2. Structural dynamics in an historical perspective Mario Pomini
3. Two approaches to the study of structural change and economic development: Kuznets and Pasinetti Moshe Syrquin
4. Analyzing knowledge flows by means of vertical integration Önder Nomaler and Bart Verspagen
5. Growth: towards a structural endogenous macro-model William J. Baumol

Part II. Structural Dynamics: The Cambridge Keynesian Perspective:
6. Luigi Pasinetti: the senior living heir of the Cambridge school of economics and the last of the great system-builders Geoffrey Harcourt
7. Toward a synthesis in post-Keynesian economics in Luigi Pasinetti's contribution Heinrich Bortis
8. Growth theory, structural dynamics and the analysis of consumption Davide Gualerzi
9. Luigi Pasinetti's structural economic dynamics and the employment consequences of new technologies Harald Hagemann
10. The concept of 'natural economic system': a tool for structural analysis and an instrument for policy design Roberto Scazzieri
11. Structural change and invariable standards Takashi Yagi

Part III. Epilogue: Structural dynamics as part of the 'unfinished revolution': on Pasinetti and the unfinished Keynesian revolution Robert M. Solow
First afterword: Pasinetti on structural dynamics Robert M. Solow
Growth and structural change: perspectives for the future Luigi L. Pasinetti
Second afterword: the significance of structural economic dynamics Luigi L. Pasinetti
Index.



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