ABSTRACT
The main issue of this chapter is a very long-standing problem that Kaldor addressed as early as 1955. What I have done here was first of all to provide some details and some assumptions that were not explicitly stated by Kaldor, but were needed to obtain his results. I also tried to connect the original presentation to other strands of literature and mainly to the so-called “New Growth Theory”, that is, to the modern theory of endogenous growth. In so doing, I expanded the original model to take into account some special cases in which returns are not necessarily diminishing or even if they are, certain limits exist.
