Asymptotic Stability of Pasinetti and Dual Equilibria in a Growth Model with Robinson Type Investment Function and Keynes-Wicksell Adj ustment Process

Torii Akio

Abstract:Samuelson-Modigliani developed the duality theorem by applying the neoclassical growth model.We should now ask whether the duality theorem is intrinsic to the macro growth theory or it depends on the neoclassical growth model.This paper examines the dual theorem rather in the Keynesian world.Our model assumes an independent Robinsonian investment function and the Keynes-Wicksel adjustment process.Our main result is:if the adjustment speed of the product price is faster than that of money wage rate, then the duality theorem does not hold for any magnitude of saving propensity, while it is true otherwise.

Key words:Pasinett'i s theorem, Robinsonian animal spirits, Keynes-Wicksell adjustment, asymptotically stable