Olena Zahoretska

[ 1 ] - Solution to “the Kuznets Riddle”

S. Kuznets's study that the average propensity to consume is a constant value were nexpected because they denied one of the basic provisions of the Keynesian theory. This fact was called "the riddle of Kuznets".  F. Modigliani and M. Friedman, using the hypothesis of the life cycle and the concept of constant income, proposed two options that explain its solution. But models should not explain,...