Nicholas Kaldor

Nicholas Kaldor

Born: 1908. Died: 1986.

One of the foremost Cambridge economists in the post-war period, Nicholas Kaldor began his professional existence in the Walrasian-Austrian tradition at Robbins's LSE - during which he made important contributions in the theory of equilibrium (1934), the firm (1934, 1935), capital (1939) and particularly, welfare economics, where he developed the famous 'compensation' criteria for welfare comparisons (1939).

After Keynes's General Theory appeared in 1936, Kaldor abandoned his LSE roots and joined the Keynesian Revolution - and even tried to convert Arthur Cecil Pigou in the process! His seminal contributions to Keynesian theory include the concept of own rates of interest and dynamic effects of speculation (1939), the introduction of non-linear dynamics in order to create an endogenous theory of the business cycle (1940). Kaldor was also involved in an intense debate (1939, 1942) with Friedrich Hayek, which helped bury the latter's venture into business cycle theory.

An outgrowth of this, was his construction of the 'Cambridge' approach to growth theory (1954, 1956, 1961, 1962) which invoked several Ricardian concepts and was to become central to Neo-Ricardian and Post Keynesian theory. He also adopted and developed Thorstein Veblen's concept of 'cumulative causation' and Verdoorn's Law (1966, 1970, 1977, 1981) - an early formulation of endogenous growth theory that also became part of the PK arsenal. Throughout his life, Kaldor remained a staunch critic of neo-classical economics as a whole, and Monetarism in particular (1970, 1972, 1975, 1977, 1983, 1985), both in theoretical terms and in policy implications.

In the post-war era, Kaldor applied his skills to development policy. Among his policy advice to developing countries was his famous 'Expenditure Tax' (1955) scheme (which was implemented in India and Sri Lanka, when Kaldor worked as an advisor to both countries) and his Bancor 'Commodity Reserve Currency' scheme (1964, with Hart and Tinbergen), is yet to be taken up.

Although his contributions to economics have been numerous and in many fields, Kaldor may be best remembered in forging, together with Joan Robinson, the core of the Cambridge School and its offshoots - the Neo-Ricardian and Post Keynesian schools.

Major Books of Nicholas Kaldor

- An Expenditure Tax, 1955
- Capital Accumulation and Economic Growth, 1961, in Lutz, editor, Theory of Capital
- Causes of the Slow Rate of Economic Growth in the UK, 1966
- Causes of Growth and Stagnation in the World Economy, Carlo Filippini and Ferdinand Targetti, editors, 1996
- Economic Consequences of Mrs.Thatcher: Speeches in the House of Lords, 1979-82, 1984
- Economics Without Equilibrium, 1985
- Equilibrium Theory and Growth Theory, 1977, in Boskin, editor, Economics and Human Welfare
- Essays on Economic Policy, Volume I & II, 1964
- Essays on Economic Stability and Growth, 1960
- Essays on Value and Distribution, 1960
- Further Essays on Applied Economics, 1978
- Further Essays on Economic Theory, 1978
- Keynes's Theory of the Own-Rates of Interest, 1960, in Kaldor, Essays on Economic Stability and Growth, 1960
- Keynesian Economics After Fifty Years, 1983, in Trevithick and Worswick, editors, Keynes and the Modern World
- Monetary Policy, Economic Stability, and Growth, 1958, in Essays on Economic Policy, 1964
-Reports on Taxation, Volume I & II, 1980
- The Scourge of Monetarism, 1982

Major Articles of Nicholas Kaldor

- 1932, A Case Against Technical Progress, Economica
- 1934, A Classificatory Note on the Determinateness of Equilibrium, RES
- 1934, The Equilibrium of the Firm, EJ
- 1935, Market Imperfection and Excess Capacity, Economica
- 1936, Wage Subsidies as a Remedy for Unemployment, JPE
- 1937, Limitational Factors and the Elasticity of Substitution, RES
- 1937, Pigou on Money Wages in Relation to Unemployment, with J.M. Keynes, EJ
- 1938, Stability and Full Employment, EJ
- 1939, Capital Intensity and the Trade Cycle, Economica
- 1939, Speculation and Economic Stability, RES
- 1939, Welfare Propositions of Economics and Interpersonal Comparisons of Utility, EJ
- 1940, A Model of the Trade Cycle, EJ
- 1942, The Income Burden of Capital Taxes, RES
- 1942, Professor Hayek and the Concertina Effect, Economica
- 1950-1951, The Economic Aspects of Advertising, RES
- 1954, The Relation of Economic Growth and Cyclical Fluctuations, EJ
- 1956, Alternative Theories of Distribution, RES
- 1957, A Model of Economic Growth, EJ
- 1957, Capitalist Evolution in the Light of Keynesian Economics, Sankhyā
- 1958, Risk Bearing and Income Taxation, RES
- 1959, Economic Growth and the Problem of Inflation, Economica
- 1960, A Rejoinder to Mr. Atsumi and Professor Tobin, RES
- 1962, A New Model of Economic Growth, with James A. Mirrlees, RES
- 1963, Taxation for Economic Development, J. Mod. African Stud.
- 1964, International Trade and Economic Development, J. Mod. African Stud.
- 1964, The Case for a Commodity Reserve Currency, with A.G. Hart and J. Tinbergen, UNCTAD
- 1970, The Case for Regional Policies, Scottish JE
- 1970, Conflicts in National Economic Objectives, EJ
- 1970, The New Monetarism, Lloyds Bank Review
- 1970, Some Fallacies in the Interpretation of Kaldor, RES
- 1972, The Irrelevance of Equilibrium Economics, EJ
- 1975, What is Wrong with Economic Theory, QJE
- 1976, Inflation and Recession in the World Economy, EJ
- 1977, Capitalism and Industrial Development, Cambridge JE
- 1981, Fallacies on Monetarism, Kredit und Kapital
- 1981, The Role of Increasing Returns, Technical Progress and Cumulative Causation in the Theory of International Trade and Economic Growth, Economie Appliquee
- 1983, The Role of Commodity Prices in Economic Recovery, Lloyds Bank Review
- 1986, Limits on Growth, OEP


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