ABSTRACT
The major issue of this chapter is to provide a Kaldor-Pasinetti model of a world economy at a given moment in time. In writing the chapter, I compared once again what happens in a simple model like the one presented here with the use of land with a model with many commodities without the use of land. Moreover, I explored two further issues. The first concerns Ricardo’s writings: did Ricardo recognize the need for and the role of the concept of a world economy? The second concerns the Heckscher-Ohlin-Samuelson (HOS) theory and how the results presented here compare with those supported by this theory. It turned out that there are two assumptions that are very important in deriving the different results.
