Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. The Review of Economic Studies Ltd. is collaborating with JSTOR to digitize, preserve and extend access to The Review of Economic Studies. http://www.jstor.org-The theory of distribution is due to Nicholas Kaldor, who put it forward in " Alternative Theories of Distribution," Tlhe Review of Economic Studies, 1955-56. The relation of the rate of profit to the rate of growth has a longer story. In the thirties, J. von Neumann and also N. Kaldor, while still accepting a marginal productivity theory of the rate of interest, analysed the case of a slave economy, showing that the rate of growth is maximum when it is equal to the rate of interest. (J. von Neumann, " A Model of General Economic Equilibrium," Tlhe Review of Economic Stuidies 1945-46, a paper first presented at a seminar of Princeton University in 1932; N. Kaldor, " The Controversy on the Theory of Capital," Economiietrica 1937, p. 228 and ff.). It was, however, only with the recent macro-dynamic models that the causal link has been reversed. A relation of dependence of the rate of profit on the rate of growth appeared first, in the form of verbal statements supplemented with an arithmetical example, in

No abstract

No abstract

No abstract

No abstract