Growth, income distribution and autonomous public expenditures

Olivier Allain ()

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Abstract: This article presents a Kaleckian model which is enriched by introducing autonomous public expenditures growing at an exogenous rate. We show that the usual properties are not affected in the short run: an increase in the profit share thus causes a decrease in the rate of capital accumulation (growth is wage-led). But long run properties are strongly affected: public expenditures play a role of automatic stabilizer such that accumulation rate converges toward the growth rate of public expenditures. The effect of a change in income distribution on the growth rate is then only transient. However, the impacts on the variables in level (output, capital stock, labor...) remain permanent.

Keywords: Kaleckian models; economic growth; income distribution; public expenditures; Automatic stabilizers; modèles kaleckiens; croissance; répartition des revenus; dépenses publiques; stabilisateurs automatiques (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

Published in European Journal of Economic and Social Systems, 2012, 25 (1-2), pp.59-72. ⟨10.3166/ejess.25.59-72⟩

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Journal Article: Growth, income distribution and autonomous public expenditures (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00964308

DOI: 10.3166/ejess.25.59-72

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