Financialisation in a comparative static, stock-flow consistent Post-Kaleckian distribution and growth model

Eckhard Hein

No 21-2008, IMK Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute

Abstract: Into an analytical stock-flow consistent Post-Kaleckian distribution and growth model the following transmission channels of 'financialisaton' are integrated. 1. 'Financialisation' is assumed to affect distribution between firms and rentiers in the short run, and distribution between capital and labour through a dividend-elastic mark-up in firms' price setting in the medium run. 2. Firms' investment is affected through a 'management's preference channel' and an 'internal means of finance channel'. 3. Consumption is influenced via distribution of dividends in the short run and via a reduction in the labour income share in the medium run. In the model the total effect of 'financialisation' is derived, the development of firms' outside finance-capital ratio is endogenised, and the medium-run stability and viability of the financial structure and of capital accumulation is checked.

Keywords: 'Financialisation'; distribution; growth; instability; Post-Kaleckian model (search for similar items in EconPapers)
JEL-codes: E12 E21 E22 E25 E44 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: ‘Financialisation’ in a comparative static, stock-flow consistent post-kaleckian distribution and growth model (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:imk:wpaper:21-2008

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