Review Article : Growth, Returns to Scale and the Classical Theory of Value and Distribution

Kurz and Salvadori's thoroughly accounts for the recent developments in the classical theory of value and distribution. The authors, however, claim that long-period classical analysis can only deal with stationary economies, or economies in balanced growth, and restrict their theoretical treatment accordingly. This aspect of the book is singled out for comments, and it is argued that Kurz and Salvadori's perception of the limits to the use of the 'long-period method' in classical analysis does not seem to rely on convincing foundations. Some critical remarks are also offered concerning the 'alternative analytical framework' suggested in the book