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P Toner, Notes and comments. 'History versus equilibrium' and the theory of economic growth, by Mark Setterfield: a comment, Cambridge Journal of Economics, Volume 25, Issue 1, January 2001, Pages 97–102, https://doi.org/10.1093/cje/25.1.97
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Abstract
Setterfield criticised previous formal models of cumulative causation (CC) for their determinism in which economic growth rates are simply a function of 'initial conditions'. Setterfield argued these formal models accurately represented the work of the leading CC figure, Nicholas Kaldor. This paper argues that, on the contrary, Kaldor identified a number of endogenous mechanisms that account for those stylised facts of economic history, which are absent in formal models of CC.
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