Summary:

This article tries to determine what happens to income distributions as a

result of a country’s economic growth and the factors influencing this. Kuznets

explains that the data is scarce and not always accurate so he provides a

framework to build his research upon. He uses the income before direct taxes

from England, the US and Germany. In the first part, Kuznets concludes that the

income distribution is curved: with inequality rising in the beginning,

stabilizing and falling afterwards. As an explanation he gives the cumulative

effects of savings and industrialization. However, he admits that the

technological progress is more significant than savings since there are many

factors counteracting this effect. He also provides some other trends related

to inequality such as population growth, urbanization and migration.

Furthermore, Kuznets concludes that there is a larger gap between high and low

income percentiles in underdeveloped countries and explains that

industrialization provides an opportunity to narrow the gap. Finally, he

stresses the importance of better knowledge of income distributions and calls

for further research in this field.

Quality:

The paper has been cited 11414 times. The American Economic Review has an

impact factor of 3.833

on the Web of Science.

Kuznets, S. (1955). Economic Growth and Income

Inequality. American Economic Review,

45(1), 1-28.

The model: The

profits for entrepreneurship as well as salary for labour, need to be satisfied

for the model to be successful. Welfare will have a higher grow rate than the

grow rate of the population. Also, what turns out is that technology has a

great influence in the growth rate of enterprises and their output. However,

when growth percentages go down, capital accumulation will decrease and the

economy of a country or economy settles down. This is what is happening in

Western economies and will eventually also take place in rapidly growing Third

World economies.

Summary:

There are various factors determining the trend rate of growth in a country and

determine why some have a bigger grow rate than others. Goal of this research

is to show a clear overview of economic growth using those factors. This model

was based on Keynesian methods, but they strongly differ from those used in

this research: 1) Final output is determined by supply, not demand. 2) It

should include technological growth. 3) S = I 4) Technology contributes in

accumulated capital. 5) Take an economy as a whole. 6) We take relative prices

of goods.

Quality:

The paper has been cited 2682 times according to Google Scholar. The journal in

which this article has been published has an impact factor of 2.608 on the Web

of Science.

Kaldor, N. (1957). A Model of Economic Growth. The Economic Journal, 67(268), 591-624.

Summary:

Where Harrod-Damar uses short-run tools for determining long run issues, Solow

uses a different approach for economic growth. All saved income in a community

in invested in capital (K=sY). Output then again, is produced by the factors

Labour and Capital (Y=F(K,L)). Combining them results in K=sF. Taking the

assumption of the Harrod model of labour without technological growth, the

following equation exists: K=sY(K,L0ent). Adding a ratio

capital to labour K/L=r in time our new equation holds: K=L0ent

+ nrL0ent. Using Solow, because of the law of diminishing

returns and Cobb-Douglas function, the rate of extra output will be less than

the rate of extra input of Capital in economies. Also, as depreciation takes

place, the more capital you have, the less you can invest in capital until you

reach the steady state and can’t invest. The same holds for labour. The

Harrod-model is wrong here, as it takes only this treatment in the short run.

However, this steady state will never be reached because of technological

growth, where above steady-factors will be multiplied by A, the factor of

technological growth resulting in an edge growth, resulting Y=A(t)Y(K,L).

Quality:

In Google Scholar the article has been cited 24406 times. The article has been

published in The Quarterly Journal of Economics, which has an impact factor of

5,920.

Solow, R.M. (1956). A Contribution to the Theory of

Economic Growth. Quarterly Journal of

Economics, 70(1), 65-94.

For this assignment,

we have assessed the quality and summarized the following three articles: