Distribution and growth in France and Germany - single equation estimations and model simulations based on the Bhaduri/Marglin-model

Eckhard Hein and Lena Vogel ()
Additional contact information
Lena Vogel: University of Hamburg (Student)
Authors registered in the RePEc Author Service: Lena Dräger

No 04-2007, IMK Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute

Abstract: The authors analyse the relationship between functional income distribution and economic growth in France and Germany from 1960 until 2005. The analysis is based on a demand-driven distribution and growth model for an open economy inspired by Bhaduri/Marglin (1990), which allows for profit- or wage-led growth. First, the authors apply a single equation approach, estimating the effects of redistribution on the demand aggregates and summing up these effects in order to obtain the total effect of redistribution on GDP growth. Since interactions between the demand aggregates are omitted from this approach, the authors also apply a simulation approach taking into account these interactions. In the single equations approach the authors find that growth in France and in Germany was wage-led. This qualitative result is confirmed by the simulation approach, but the quantitative effects differ somewhat. Whereas in the single equation approach the wage-led nature of the demand regime in Germany seems to be more pronounced than in France, in the simulation approach the effects in the two countries seem to converge.

Keywords: Distribution; growth; demand-led accumulation regimes (search for similar items in EconPapers)
JEL-codes: E12 E21 E22 E23 E25 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2007-03
New Economics Papers: this item is included in nep-eec and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Distribution and Growth in France and Germany: Single Equation Estimations and Model Simulations Based on the Bhaduri/Marglin Model (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:imk:wpaper:04-2007

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