Entrepreneurs' capital accumulation behavior and long-run equilibrium

The purpose of this paper is to derive some interesting results on long-run equilibrium by considering entrepreneurs' capital accumulation behavior explicitly. Our framework is a two class, two production sector model in order to analyze the dynamic stability properties in the cases of Kaldor's saving assumption and Pasinetti's saving assumption. We shall introduce a further adjustment mechanism: the speeding up (slowing down) of capital accumulation in that sector in which the rate of profit is higher (lower).