Financialization in Kaleckian Economies with and without Labor Constraints

Soon Ryoo () and Peter Skott ()

Intervention. European Journal of Economics and Economic Policies, 2008, vol. 5, issue 2, pages 357-386

Abstract: Most Kaleckian models assume a perfectly elastic labor supply, an assumption that is questionable for many developed economies. This paper presents simple labor-constrained Kaleckian models and uses these models to compare the implications of financialization under labor-constrained and dual-economy conditions. The paper complements the analysis in Skott and Ryoo (2008) which did not include labor-constrained Kaleckian economies. We show that for plausible parameter values the financial changes commonly associated with financialization tend to be expansionary in both dual-economy and labor-constrained settings.

Keywords: financialization; stock-flow consistency; labor constraints; Kaleckian model (search for similar items in EconPapers)
JEL-codes: E12 E44 (search for similar items in EconPapers)
Date: 2008
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Working Paper: Financialization in Kaleckian economies with and without labor constraints (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:int:journl:v:5:y:2008:i:2:p:357-386

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