Heterodox Theories of Economic Growth and Income Distribution: A Partial Survey

Abstract

Heterodox theories of economic growth and income distribution are surveyed, focusing on major theories and recent contributions. First, a general framework for examining growth and distribution is discussed, in terms of which classical†Marxian and post†Keynesian–Kaleckian and other theories are presented. Since this framework examines how variables are determined in equilibrium, second, dynamics behind equilibria are examined, focusing on goods market and labor market changes. Third, the framework is extended in a variety of ways to examine additional models addressing productivity growth and technical change, money and inflation, finance and debt, additional distributional considerations, multisector issues, open economy questions, and the environment. It is concluded that the literature on heterodox theories of growth and distribution is vibrant, large, and growing, and addresses many issues that are ignored or neglected in orthodox theories, including power, unemployment, and aggregate demand.