Introduction

Kaldor-Verdoorn's Law and Increasing Returns to Scale: A Comparison Across Developed Countries

“…Similar results on the Verdoorn's Law were obtained in almost all subsequent studies where alternative indicators for capital stock were employed (for review, see: McCombie and Thirwall, 1994;McCombie, 2002;McCombie et al 2002). Moreover, the literature on this subject attempted to enrich the [1] adding some proxies among regressors to capture the effects on the productivity growth due to supply factors.…”

“…As reviewed in McCombie et al (2002), empirical literature in the last decades has extensively focused on the estimation of the Kaldor-Verdoorn's Law (hereafter, KVL). Numerous methodologies have been employed using data from different countries, sectors and time periods.…”