1983 | OriginalPaper | Chapter
Comment on P. J. K. Kouri, “Profitability and Growth”
Author : Thorvaldur Gylfason
Published in: Long-Run Effects of Short-Run Stabilization Policy
Publisher: Palgrave Macmillan UK
Included in: Professional Book Archive
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The purpose of Kouri’s paper is to establish an explicit link between profitability and growth in an economy characterized by capital shortage and excess supply of labor. This link is derived from the effect of the rate of profit on the investment behavior of intertemporally profit-maximizing firms which, in the second part of the paper, is taken to interact with the saving behavior of intertemporally utility-maximizing households.