ABSTRACT
The Cambridge, or post-Keynesian, or neo-Keynesian theory of distribution is the result of the original attempts of Cambridge economists such as N. Kaldor, Joan Robinson, R.F.Kahn and L.L.Pasinetti to extend the Keynesian-Kaleckian principle of effective demand to the long period. Its most celebrated result is the so-called Cambridge theorem of the rate of profits. If the economy grows at Harrod’s natural rate of growth (gn), money wages are entirely consumed and aggregate profits are saved at the constant rate sp, the long-period, uniform rate of profits (r) will be r=gn/sp, the Cambridge theorem in the Kaldorian version.
