A note in tribute to the Kaldor’s “Cambridge Equation” since the 50s to our days

Abstract

This note presents a historical overview of the important contribution made by Kaldor named “Cambridge Equation” and the debate around the theme. Our main objective here is to summarize this kind of literature from the start to our days. Here, we present the development of such theory by initiating in his seminar article “Alternative Theories of Distribution”, passing to Pasinetti’s contribution by differentiating class, after that the introduction of government activities, extensions with an Open Economy until our days, where the globalization and financial system is considered. We also present the original Solow-Samuelson-Meade and other critiques. Finally, we show the importance of the theory to the present intending to understand social-economic behaviours.