Pasinetti and Dual Equilibria in a Post Keynesian Model of Growth and Institutional Distribution.

In this paper, the author extends the post-Keynesian theory of growth and distribution to a corporate economy. He shows that the rate of profits and the distribution between profits and wages are influenced by the behavioral parameters of shareholders and firms, such as the degree of indifference between dividends and capital gains and the retention ratio, and by long-lasting stock market imperfections. What has been obtained in previous analyses, such as O'Connell (1985, 1995), are special cases of these results. The conditions for the existence of what are known in the literature as Pasinetti and dual equilibria are also investigated. Copyright 1999 by Royal Economic Society.