Distribution, wealth and demand regimes in historical perspective
Engelbert Stockhammer (),
Joel Rabinovich () and
No 14-2018, FMM Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute
Most empirical macroeconomic research limited to the period since World War II. This paper analyses the effects of changes in income distribution and in private wealth on consumption and investment covering a period from as early as 1855 until 2010 for the UK, France, Germany and USA, based on the dataset of Piketty and Zucman (2014). We contribute to the post-Keynesian debate on the nature of demand regimes, mainstream analyses of wealth effects and the financialisation debate. We find that overall domestic demand has been wage-led in the USA, UK and Germany. Total investment responds positively to higher wage shares, which is driven by residential investment. For corporate investment alone, we find a negative relation. Wealth effects are found to be positive and significant for consumption in the USA and UK, but weaker in France and Germany. Investment is negatively affected by private wealth in the USA and the UK, but positively in France and Germany.
Keywords: historical macroeconomics; demand regimes; Bhaduri-Marglin model; wealth effects; financialisation (search for similar items in EconPapers)
JEL-codes: B50 E11 E12 E20 E21 N10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-his, nep-hme, nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
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:imk:fmmpap:14-2018
Access Statistics for this paper
More papers in FMM Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute Contact information at EDIRC.
Bibliographic data for series maintained by Sabine Nemitz ().