 Distribution-led growth in the long runMichalis Nikiforos
Review of Keynesian Economics, 2016, vol. 4, issue 4, 391-408 Abstract: This paper examines the long-run fluctuations in growth and distribution through the prism of wage- and profit-led growth. It argues that the relation between distribution of income and growth changes over time and proposes an endogenous mechanism that leads to fluctuations between wage- and profit-led periods. The ephemeral character of distribution-led regimes needs to be taken into account when someone estimates empirically the effect of a change in distribution on utilization and growth. The model is a linear version of Goodwin's predator–prey model, but with a reversal of the roles for predator and prey; this is another way to conceptualize the symbiosis between the two classes within a capitalist economy. The aforementioned argument is also examined in relation to the double movement of Karl Polanyi and the inverse U-shaped curve proposed by Simon Kuznets. Keywords: wage-led; profit-led; long swings; predator–prey (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:elg:rokejn:v:4:y:2016:i:4:p391-408 Access Statistics for this article Review of Keynesian Economics is currently edited by Thomas Palley, MatÃas Vernengo and Esteban Pérez Caldentey More articles in Review of Keynesian Economics from Edward Elgar Publishing |
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