Secular Stagnation and Income Distribution Dynamics
David Kiefer, Ivan Mendieta-Munoz, Codrina Rada, Rudiger von Arnim
Authors registered in the RePEc Author Service: Rudiger L. von Arnim (),
Ivan Mendieta-Muñoz and
Working Paper Series, Department of Economics, University of Utah from University of Utah, Department of Economics
This paper contributes to the literature on secular stagnation by estimating a measure of potential output growth for the post-war US economy derived from a novel model specification that allows for the cyclical interactions between income distribution, represented by the trajectory of the labor share of income, and economic activity, as measured by capacity utilization. The results obtained show that potential output growth exhibits a gradual decline that predates the Great Recession and follows the downward trajectory of the labor share of income, thus suggesting the existence of an important long-run relationship between income distribution and output growth in the USA.
Keywords: Potential output growth; capacity utilization; income distribution; labor share; US economy. (search for similar items in EconPapers)
JEL-codes: B50 E12 E25 O40 (search for similar items in EconPapers)
Pages: 27 pages
New Economics Papers: this item is included in nep-hme, nep-mac and nep-pke
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Journal Article: Secular Stagnation and Income Distribution Dynamics (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:uta:papers:2019_05
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