The Impact of Financialization on the Rate of Profit
Stefano Di Bucchianico ()
Review of Political Economy, 2021, vol. 33, issue 2, 303-326
This work investigates some channels through which financialization may impact the normal rate of profit by making use of the ‘integrated wage-commodity sector’ methodology. We analyse the effect of technical innovations in the financial sector, a higher financial sector’s share of profits and GDP, rising household indebtedness and socio-political factors that reduce workers’ bargaining power. We find that during the financialization era, the first factor did not impact normal profitability since it mostly regarded instruments such as derivatives. The second should in principle not affect the normal rate of profit although it may impact aggregate income shares. The third, as far as its effect on aggregate demand is concerned, does not have an impact on the normal rate of profit. The fourth turns out to be the main factor that drives the normal rate of profit upwards through its impact on functional income distribution.
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:revpoe:v:33:y:2021:i:2:p:303-326
Ordering information: This journal article can be ordered from
Access Statistics for this article
Review of Political Economy is currently edited by Steve Pressman and Louis-Philippe Rochon
More articles in Review of Political Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().