Structural change with different consumption profiles in a pure labour economy

Leopoldo Costa and Joanilio Rodolpho Teixeira

Structural Change and Economic Dynamics, 2018, vol. 47, issue C, 28-34

Abstract: Our purpose is to extend the pure labour model in order to deal with different consumption profiles. The condition of effective demand is different from that obtained by Pasinetti (1981, 1993) because now it depends on the family types. In addition, the inclusion of different consumption profiles, and their own dynamics, makes the task of pursuing full employment more challenging. Families face different inflation rates, even with stability of prices. In this vein, the necessity of the Central Bank to pursue stability of general price level is formally approached. The Central Bank intervention is also justified by the influence of different consumption profiles on the rate of interest and on the inter-temporal distribution of income. Our analysis shows some consequences and complexities of a preliminary institutional approach.

Keywords: Structural change; Pure labour model; Consumption profile (search for similar items in EconPapers)
JEL-codes: D1 E2 E4 O1 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:47:y:2018:i:c:p:28-34

DOI: 10.1016/j.strueco.2018.06.002

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