Kui-Wai Li, in Redefining Capitalism in Global Economic Development, 2017. The share of capital as conventionally measured has been on the rise, as has interpersonal inequality of income and wealth. The Kuznets facts are de–ned by the change in the sectoral shares of labor and consumption. Bringing these facts centre stage has been the achievement of research leading up to Piketty (2014). He pointed out the 6 following 'remarkable historical constancies revealed by recent empirical investigations': Increased flows of goods, ideas, finance, and people — via globalization as well as urbanization — have increased the ex-tent of the marketfor all workers and consumers. THENEW KALDOR FACTS 3 Here is a summary of our new list of stylized facts, to be discussed in more detail below: 1. Kaldor's facts are six statements about economic growth, proposed by Nicholas Kaldor in his article of 1957. CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): We analyze the equilibrium of a multi-sector growth model where the introduc-tion of minimum consumption requirements makes preferences be non-homothetic. Criticizing the neoclassical models of economic growth of his time, Kaldor argues that theory construction should begin with a summary of the relevant facts. 2 According to Mr. Maiwald's calculations based on fire-insurance figures, the capital/output ratio in Britain remained practically unchanged in the period 1870-1914 (at around 3.3) and fell INTRODUCTION It is well documented that economic growth goes hand in hand with significant shifts in the sectoral structure of output, employment, and ex-penditures (Kuznets (1957)). Abstract The Kuznets-Kaldor stylized facts are one of the most striking empirical observations about the development process in the industrialized countries: While massive factor reallocation across technologically distinct sectors takes place, the aggregate ratios of the economy are quite stable. The work of Kaldor and Kuznets in particular helped establish the assumption that there is a trade o ff between reducing inequal- ity and promoting growth (Forbes, 2000). Output per worker grows at a roughly constant rate that does not diminish over time. While both of these papers are potentially consistent with the Kuznets and Kaldor facts, they do not contain the main contribution of our paper: nonbalanced growth re-sulting from factor proportion differences and capital deepening. Kaldor’s six facts on economic growth, often abbreviated to Kaldor’s facts, is a set of statements about economic growth. In 1922 the family emigrated to the U.S. Four years later he had earned bachelor's, master's and doctor's degrees at Columbia University. Kuznets, " Long Term Changes in the National Income of the U.S.A. since 1870," Income and Wealth, Series II.) However, the Kaldor-Kuznets stylised facts no longer hold for advanced economies. Furthermore, we show by empirical evidence that this explanation is in line with 55% of structural change in the USA between 1948 and 1987. Nicholas Kaldor summarized the statistical properties of long-term economic growth in an influential 1957 paper. 2. Of course, there are variations and subtleties of data and interpretation, and the pattern is not uniform. His broad generalizations, which were initially derived from U.S. and U.K. data, but were later found to be true for many other countries as well, came to be known as 'stylized facts'. IV Inequality and Development. It stands to reason that theories developed to explain constanc… Kaldor facts or the growth facts. But these are the stylised facts of our time. Simon Kuznets was born in Pinsk in what is now Belarus, but he received his basic education in Kharkov in present-day Ukraine. which can explain the Kuznets-Kaldor-puzzle by independent preferences and technologies. Economic long-run trends: Kaldor’s stylized facts Kaldor’s “stylized facts” of economic growth (Kaldor 1961) in the most develope d countries in the last century are listed in B & S, p. 12.1 1. We propose a model of non-balanced endogenous growth in which the final good, which can be either consumed or used as capital, is produced using two intermediate inputs, one being "knowledge-intensive". The rate of return to capital is constant. 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