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Michal Kalecki's Introduction to the theory of growth in a Socialist economy: A Review Article

Journal of Economic Literature 1971
THE POSTHUMOUS DISTRIBUTION of two of Michal Kalecki's last works [3, 1969 and 4, 1971] offers an opportunity to draw attention to the career of one of Poland's most illustrious economic theorists. If Kalecki's formulation of a macroanalytic theory was overshadowed by Keynes in the mid-'thirties, he nonetheless went on to develop it and to make other contributions -both theoretical and applied. In the latter category was his participation in the establishment of the United Nations' World Economic Report. Kalecki's voluntary return to Poland was not uniformly beneficial to his career; there is, unfortunately, ample evidence that any official recognition of his brilliance was accompanied by an overt distrust of his revisionism. The calamities that befell the Polish economy in 1969-70 are ample proof that Kalecki had the rare distinction of being a prophet in his own country. He repeatedly warned Gomulka of the disastrous effects that his economic policy was likely to have. Although he was a Jew, Kalecki was not directly subject to the slanderous official antiSemitic campaigns launched after the 1967 Arab-Israeli War. But he personally was greatly tormented by the inequities and the upsurge of forces of retrogression. In 1968 Professor Kalecki retired voluntarily in protest against the dismissal of many colleagues who fell victims to the wave of repression against alleged revisionists and Zionists. Another form of protest was his refusal to publish in his native country. Kalecki was greatly esteemed by the various groups of progressive economists in Eastern Europe and the U.S.S.R. Also, in the West, he found many staunch admirers of his analytical powers and towering personal integrity. Yet his work has gained in neither East nor West the recognition that it merits. The reputation in the West of Michal Kalecki (who died in 1970) probably rests on his seminal contributions to (1) the theory of economic dynamics and distribution of income, (2) his anticipation and independent discovery of all the essential ingredients of the Keynesian system, (3) his prediction of the regime of the political business cycle, and (4) his development of the concept of general rationing, etc. His contributions to the development of a theory of economic growth and planning under socialism, and to the elaboration of a perspective plan, will probably gain a fifth and equal place in the history of economic thought-and will become just as important in influencing economic policy. (Historical parallels are difficult, however, and this is not the place to make conjectures on the likely impact of theories on policy.) These books bear witness to the clarity of his thinking as well as to the capacity of an adept translator to convey the beauty of his exposition. The study at hand on the socialist economy [3, 1969] reflects Kalecki's first hand knowledge of the realities of planning, the wealth of experience he accumulated as an adviser to the Polish and other governments, and the acuteness of a brilliant theoretical mind. A parallel could, perhaps, be drawn between the development of Kalecki's theory of growth in a socialist economy and the development of his business cycle theory (theory of economic dynamics of the capitalist economy); both were essentially derived from a perceptive observation of economic realities. Kalecki was always primarily interested in and preoccupied with the most urgent problems requiring solution. Kalecki stresses throughout that his work

Separation of Ownership and Control and Profit Rates, the Evidence from Banking: Comment

Journal of Financial and Quantitative Analysis 1971 6(1), 615
This paper presents the results of a study which sought to determine whether the status of large member banks as owner-controlled or management-controlled has borne a significant relation to bank profit rates during recent years. The impetus for the study was provided by the view, encountered frequently in the literature, that management-controlled firms may place less emphasis on profit rate than owner-controlled firms, sacrificing it for performance goals regarded as more consistent with management interest. W. Baumo.1 [1, p. 4 and pp. 101–104], for example, has argued that management-controlled firms may sacrifice profit rate in order to achieve higher growth rate and reduced risk acceptance. R. Monsen and A. Downs [11] suggest that such firms may sacrifice both profit rate and growth rate for reduced risk acceptance. K. Cohen and S. Reid, in their study of bank merger activity during 1952–1961 [5], argue that bank managers, as compared to bank owners, place more emphasis on growth rate and less emphasis on profit-associated variables. Other possibilities present themselves. Management-controlled firms may sacrifice profit rate directly for management salaries, bonuses, and fringe benefits, including benefits associated with management prestige. The management-controlled firms may simply pursue efficiency less vigorously.

Weak Experimental Verification of the Expected Utility Hypothesis

Review of Economic Studies 1971 38(4), 481
Journal Article Weak Experimental Verification of the Expected Utility Hypothesis Get access R. N. Rosett R. N. Rosett University of Rochester Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 38, Issue 4, October 1971, Pages 481–492, https://doi.org/10.2307/2296691 Published: 01 October 1971

Counter-examples to an Assertion Concerning the Normal Distribution and a New Stochastic Price Fluctuation Model

Review of Economic Studies 1971 38(3), 381
Journal Article Counter-examples to an Assertion concerning the Normal Distribution and a New Stochastic Price Fluctuation Model Get access R. A. Agnew R. A. Agnew Air Force Institute of Technology Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 38, Issue 3, July 1971, Pages 381–383, https://doi.org/10.2307/2296391 Published: 01 July 1971

The Invariably Stable Cobweb Model

Review of Economic Studies 1971 38(1), 117
Journal Article The Invariably Stable Cobweb Model Get access R. D. Auster R. D. Auster The City College of the City University of New York Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 38, Issue 1, January 1971, Pages 117–121, https://doi.org/10.2307/2296630 Published: 01 January 1971

The Dynamic Effects of Fiscal Policy in an Economy with Foresight

Review of Economic Studies 1971 38(2), 229
Journal Article The Dynamic Effects of Fiscal Policy in an Economy with Foresight Get access R. E. Hall R. E. Hall University of California, Berkeley Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 38, Issue 2, April 1971, Pages 229–244, https://doi.org/10.2307/2296781 Published: 01 April 1971

Cournot Oligopoly and Competitive Behaviour

Review of Economic Studies 1971 38(4), 493
Journal Article Cournot Oligopoly and Competitive Behaviour Get access R. J. Ruffin R. J. Ruffin University of Iowa Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 38, Issue 4, October 1971, Pages 493–502, https://doi.org/10.2307/2296692 Published: 01 October 1971