Government Deficit Spending Is Not Incompatible with the Cambridge Theorem of the Rate of Profit: A Reply to Fleck and Domenghino

Abstract

In a rather sensationally written article in this journal, Fleck and Domenghino (1987) claimed that Kaldor's theory of income distribution and the related long-run theory of the rate of profits, which for brevity's sake I shall call the Cambridge Theorem,' remain valid when extended to an economy in which government activity is carried out with a balanced budget, but break down when the more general case is considered of an economy with a government-budget deficit.2 Earlier in the literature, Samuelson and Modigliani had proposed a

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 23 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.