Aid for trade is a new foreign aid initiative to assist recipient countries to build trade-related infrastructure. We formulate a small-country, two-good (i.e., investment and consumption goods), two-factor (i.e., capital and labor) endogenous growth model with learning by doing and...

This paper corrects an error in Palley (2013) and offers an alternative interpretation of the difference between Cambridge and Kaleckian growth models. Using a Cambridge model with a variable profit share and full utilization of capital, a fiscal transfer from capitalists to workers is shown to...