Secular stagnation and concentration of corporate power

Joan Rovira ()
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Joan Rovira: Economic Studies Office, Barcelona Chamber of Commerce (ES)

No PKWP1704, Working Papers from Post Keynesian Economics Society (PKES)

Abstract: We identify a set of key stylised facts characterising the evolution of the seven largest advanced economies from the 1960s to 2015 and develop a small one-sector model of growth and distribution broadly consistent with these facts. The model is used to explore the relationship between falling trend growth, the re-distribution of aggregate income towards profits and the concentration of corporate power and wealth. Theory is confronted with history to illustrate how changes in social structure can affect economic behaviour and performance. We argue that finance-led corporate restructuring, involving debt-financed corporate transactions, may have played a crucial role in shaping long-term patterns of growth and distribution.

Keywords: Stagnation; Distribution; Growth; Financialisation; Heterodox Economics (search for similar items in EconPapers)
JEL-codes: B22 E11 E12 E44 E65 G01 O11 (search for similar items in EconPapers)
Pages: 38
Date: 2017-05
New Economics Papers: this item is included in nep-his, nep-hme, nep-mac and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:pke:wpaper:pkwp1704

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