Profit-led or Wage-led Regimes: the Effect ofSaving Behaviours

Nicolas Canry ()
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Nicolas Canry: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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Abstract: In this article, we modify the saving function of the Bhaduri-Marglin model and obtain a hump-shaped curve of output in function of wage-share: the nature -exhilarationist or stagnationist- of the economic regime depends on the level of income distribution. Economic policy can thus consist of shifting income distribution by redistributive policy in order to stimulate output. These conclusions remain valid in open economy, even though the exhilarationist regime is then more likely to arise. At last, we adopt a dynamic perspective by adding a wage equation to the model, which is thus characterised either by cycles or an underemployment equilibrium.

Keywords: Cycles; Income share; Post-Keynesian theory; Saving; Unemployment (search for similar items in EconPapers)
Date: 2006-09-12
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Published in Colloque CES-MATISSE « Etat et régulation sociale. Comment penser la cohérence de l'intervention publique ? », Sep 2006, Paris, France

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00149388

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