THE TWO ONE CLASS MODEL OF ECONOMIC-GROWTH

This paper reconsiders the two/one-class model of economic growth, att ributable to Kaldor, Pasinetta, Meade, Samuelson, Modigliani, and Sate , under the assumptions that part of corporate profits may not be dist ributed as dividends. Using results of Baranzini (1998), the distribut ion of property between the workers and capitalists is related to the rates of return on capital, Implications of a positive retention ratio are briefly considered.