ON DIFFERENTIAL SAVINGS PROPENSITIES IN TWO-CLASS GROWTH MODELS

THE PROPERTIES OF THE SAVINGS-INCOME RATIOS IN GROWING ECONOMIES WHERE THERE ARE TWO CLASSES OF PEOPLE, LABELLED WORKERS AND CAPITALISTS, ARE EXPLORED. THE AUTHORS PURPOSE TO SHOW THAT UNDER VERY GENERAL CONDITIONS ONE CAN DEMONSTRATE THAT THE SAVINGS-INCOME RATIO OF WORKERS WILL BE LESS THAN THAT OF CAPITALISTS IN GROWING ECONOMIES. THUS A CRITICAL ASSUMPTION IN GROWTH MODELS IS ACTUALLY A SIMPLE CONSEQUENCE OF BEHAVIOR PATTERNS THAT ARE CONSISTENT WITH STEADY-STATE GROWTH.