Income distribution and aggregate demand: a global Post-Keynesian model

Ozlem Onaran and Giorgos Galanis

No 14052, Greenwich Papers in Political Economy from University of Greenwich, Greenwich Political Economy Research Centre

Abstract: This paper estimates the effects of a change in the wage share on growth at a national and global level in the G20 countries. A decrease in the wage share leads to lower growth in the euro area, Germany, France, Italy, UK, US, Japan, Turkey, and Korea, whereas it stimulates growth in Canada, Australia, Argentina, Mexico, China, India, and South Africa. However, a simultaneous decline in the wage share in all these countries leads to a decline in global growth. Furthermore, Canada, Argentina, Mexico, and India also contract when they decrease their wage-share along with their trading partners.

Keywords: wage share; growth; global multiplier; consumption; investment; exports; imports; G20; developed and developing countries (search for similar items in EconPapers)
Date: 2013-06-01
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Citations: View citations in EconPapers (2)

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http://gala.gre.ac.uk/id/eprint/14052/1/GPERC01_Onaran_GalanisF.pdf

Related works:
Working Paper: Income distribution and aggregate demand: A global Post-Keynesian model (2013)
Working Paper: Income Distribution and Aggregate Demand: A Global Post-Keynesian Model (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:gpe:wpaper:14052

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