 Changing quantile distributive growth cyclesJose Barrales-Ruiz and Ivan Mendieta-Muñoz Structural Change and Economic Dynamics, 2025, vol. 74, issue C, 441-456 Abstract: This paper examines the changes in the dynamic interactions between short-run economic growth (EG) and functional income distribution (ID) before and during contemporary neoliberal capitalism in the USA. We estimate structural quantile vector autoregression models, thus studying the dynamic changes that have occurred in all parts of the conditional probability distributions of both EG and ID. First, we find evidence of important reductions in the profit-led effect across the whole probability distribution of EG during neoliberalism. Second, we find that profit squeeze dynamics have decreased at most parts of the probability distribution of ID but have increased its effect in the left tail of the latter, thus becoming more heterogeneous across the probability distribution of ID. Although the underlying transmission mechanisms have remained unaltered across the two periods, our results highlight that the interactions between EG and ID have become a more complex phenomenon to study since the mid-1980s. Keywords: Economic growth; Functional income distribution; Quantile vector autoregression; Neoliberalism (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:eee:streco:v:74:y:2025:i:c:p:441-456 DOI: 10.1016/j.strueco.2025.04.008 Access Statistics for this article Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen More articles in Structural Change and Economic Dynamics from Elsevier |
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