Users' questions

What is nicholas Kaldor theory?

What is nicholas Kaldor theory?

Kaldor postulates the “technical progress function”, which shows a relationship between the growth of capital and productivity, incorporating the influence of both the factors. Where the capital-output ratio will depend upon the relationship of the growth of capital and the growth of productivity.

Which concept is given by Nicholas 1961?

Gunnar Myrdal got the concept from Knut Wicksell and developed it alongside Nicholas Kaldor when they worked together at the United Nations Economic Commission for Europe….Nicholas Kaldor.

The Lord Kaldor
Contributions Kaldor–Hicks efficiency Kaldor’s growth laws Circular cumulative causation

Who gave the theory of critical minimum effort?

Harvey Leibenstein
Harvey Leibenstein (1922 – February 28, 1994) was a Ukrainian-born American economist. One of his most important contributions to economics was the concept of X-inefficiency and the critical minimum effort thesis in development economics.

What did Alfred Marshall contribution to economics?

Alfred Marshall One of Marshall’s most important contributions to microeconomics was his introduction of the concept of price elasticity of demand, which examines how price changes affect demand.

Why is the Solow model good?

The Solow growth model focuses on long-run economic growth. A key component of economic growth is saving and investment. An increase in saving and investment raises the capital stock and thus raises the full-employment national income and product.

What is critical minimum effort thesis?

The critical minimum effort theory was propounded by Prof. Harvey Leibenstein in his book Economic Backwardness and Economic growth. He discusses that underdeveloped countries are characterized by vicious circle of poverty which keeps them around a low income per capita equilibrium state.

What is the main assumption of critical minimum effort theory?

This theory is based on the assumption that if per capita income is below the critical minimum level, the economy will revert to the position of equilibrium. If the inverse in per capita income is less than critical minimum, this does not mean that economy will side back to the position of old static equilibrium.

What was Alfred Marshall’s major accomplishment?

Alfred Marshall FBA (26 July 1842 – 13 July 1924) was an English economist, who was one of the most influential economists of his time. His book, Principles of Economics (1890), was the dominant economic textbook in England for many years.

What is implication of Solow model?

The Solow model is the basis for the modern theory of economic growth. An interesting implication of Solow’s model is that poor countries should grow faster and eventually catch-up to richer countries.