Financialization and Endogenous Technological Change: a Post-Kaleckian Perspective

Pintu Parui

MPRA Paper from University Library of Munich, Germany

Abstract: In post-Keynesian literature, Hein (2012a) was the first to incorporate financialization as an influential positive determinant of the rate of technological change. However, financialization is more like a two-edged sword which can affect technological change negatively as well. We capture both the positive as well as the negative effect of financialization on technological change which encapsulates the possibility of multiple equilibria. In analyzing the long run of the model we endogenize the financialization parameter as well and get richer dynamics than Hein (2012a). We show that under certain circumstances, the higher speed of diffusion of technological innovation, more regulated financial markets, and higher intra-class competition among firms are desirable for stabilizing the economy. Finally, we provide some policy prescriptions for the same.

Keywords: Capital accumulation; Distribution; Financialization; Kaleckian model; technological change; Andronov–Hopf bifurcation; Limit cycles (search for similar items in EconPapers)
JEL-codes: C62 C69 D33 E12 G01 O16 O41 (search for similar items in EconPapers)
Date: 2018-10-05, Revised 2020-04-02
New Economics Papers: this item is included in nep-fdg, nep-ino, nep-mac, nep-ore and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Financialization and endogenous technological change: A post-Kaleckian perspective (2021)
Working Paper: Financialization and Endogenous Technological Change: a Post-Kaleckian Perspective (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:100758

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