Summary: research upon. He uses the income

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.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

 

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: