 The Impact of Rent from Unequal Exchange on Shaikh’s Classical-Keynesian Political Economic Analysis: The Example of FacebookRon Baiman Review of Radical Political Economics, 2020, vol. 52, issue 2, 239-258 Abstract: In this paper, Shaikh’s 1949–2011 classical Phillips curve (CPC) is replicated and extended to 2016. This updated CPC does not follow the pattern anticipated by Shaikh for the years 2012 to 2016. This paper hypothesizes that this divergence is a result of an increasingly “rentier†economy based on surplus extraction through unequal exchange (UE). Andrea Ricci’s methodology is then applied to the 2014 US advertising and market research (A&MR) sector as a sample test of this hypothesis. This analysis shows that UE accounts for $64 billion, or almost a half (45.3 percent), of total US A&MR value added ($141.3 billion) in 2014. A modification of Ricci’s methodology for a firm-level UE estimation finds that in 2014 Facebook alone was able to extract a within-industry, within-country, between-firm absolute rent of $3.8 billion. The paper concludes that Shaikh’s analysis needs to be extended with non-classical political economy UE, or “rentier economy,†analysis. Keywords: labor shares; industrial organization; monetary expression of labor time; social surplus; political economy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:reorpe:v:52:y:2020:i:2:p:239-258 Access Statistics for this article More articles in Review of Radical Political Economics from Union for Radical Political Economics |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.