Renato Nozaki Sugahara

This paper presents an overview of the academic production of the post-Keynesian school of economic thought on long-run economic growth and income distribution, as well as extends the overlapping generations model with heterogeneous agents, allowing both the capitalist and worker classes to maintain a positive intergenerational capital stock, and calculates the conditions for local stability and long-term interest rate, inserting production functions with human capital and endogenous technological progress in a Pasinetti model with government sector. Initially, a literature review focuses Kaldor-Pasinetti’s work, contextualized through the neoclassical growth theory from the pioneering work of Harrod-Domar. Additionally, there is a review of the production of the orthodox micro-foundations in post-Keynesian models with heterogeneous agents, comparing the results with the traditional post-Keynesians. It appears that the micro-economic foundations do not affect in essence the long-term determinants of the profit rate obtained by the Cambridge Equation. As to the models with overlapping generations, the main findings were: a) the equilibrium interest rates that maximize consumption and saving plans of the capitalist and working classes were positively affected by taxation; b) an increase in taxation and consequent transfers to the working class raise the participation of intergenerational inheritance of this class in the total capital stock; c) taxation affects the distribution of wealth between classes, since it increases the participation of the working class in the total capital stock in the economy. Furthermore, it shows that changes in the format of the production function do not alter the conditions of stability in the Pasinetti model studied, but positively influence the equilibrium interest rate.