Nicholas Kaldor, Baron Kaldor (12 May 1908 – 30 September 1986), born
Káldor Miklós, was a
Cambridge economist in the post-war period. He developed the "compensation" criteria called
Kaldor–Hicks efficiency for
welfare comparisons (1939), derived the
cobweb model, and argued for certain regularities observable in economic growth, which are called
Kaldor's growth laws. Kaldor worked alongside
Gunnar Myrdal to develop the key concept
Circular Cumulative Causation, a multicausal approach where the core variables and their linkages are delineated. Both Myrdal and Kaldor examine circular relationships, where the interdependencies between factors are relatively strong, and where variables interlink in the determination of major processes. Gunnar Myrdal got the concept from
Knut Wicksell and developed it alongside Nicholas Kaldor when they worked together at the United Nations Economic Commission for Europe. Myrdal concentrated on the social provisioning aspect of development, while Kaldor concentrated on demand-supply relationships to the manufacturing sector. Kaldor also coined the term "
convenience yield" related to commodity markets and the so-called
theory of storage, which was initially developed by
Holbrook Working.