TECHNOLOGICAL PROGRESS, INCOME DISTRIBUTION AND CAPACITY UTILISATION: A COMPUTER SIMULATION-BASED ANALYSIS

Fabio Hideki Ono and José Luís da Costa Oreiro ()

Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] from ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]

Abstract: The paper presents a post-keynesian growth model in which (i) the mark-up rate varies in the long-term due to a misalignment between the actual rate and the 'desired' profit rate; and (ii) the capital-output ratio is not necessarily constant, on the contrary it may shift as a result of the technological progress, which according the Harrod's typology can be neutral, capital saving or capital intensive. We demonstrate that the economic stability is only reached if the technological progress is neutral or capital intensive and the investiment is susceptible to fluctuations in the mark-up rate. After undergoing computer simulations, we noticed that an endogenous transition from a wage-led to a profit-led accumulation regime is feasible. Furthermore, we identified a tendency to the stabilization of the profit rate, conditioned to a high savings out of profits ratio.

JEL-codes: E12 O49 C62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp, nep-ino and nep-mac
Date: 2004
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