Understanding the Brazilian demand regime: A Kaleckian approach

Bruno Tomio

No 73/2016, IPE Working Papers from Berlin School of Economics and Law, Institute for International Political Economy (IPE)

Abstract: The empirical literature on Kaleckian growth and distribution models has almost exclusively investigated developed countries. These studies have used varied econometric techniques and estimation methods, but little attention was given to the developing countries. Onaran and Galanis (2013) provide an extensive review on this literature, and they complement it by estimating models for some developing countries. Nevertheless, due to lack of data, they were unable to estimate the model for Brazil. The contribution of this paper is to expand this empirical literature by adding the results that were found for Brazil. Hence, the Brazilian demand regime is analyzed in the period of 1956-2008, with the functional distribution of income data supplied by Adalmir Marquetti (which was developed in a paper by Marquetti et al., 2010). By applying the single-equation technique in the open economy Bhaduri/Marglin model, as outlined in Hein and Vogel (2008), the results of the estimation show that the demand regime in Brazil is wage-led, both domestically and as an open economy. Therefore, increases in the profit share tend to harm the demand. Finally, based on the estimated results and findings, policy implications are drawn.

Keywords: demand-led accumulation regimes; single equation approach; wage-led; Brazil (search for similar items in EconPapers)
JEL-codes: B50 E12 E25 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/144819/1/865584621.pdf (application/pdf)

Related works:
Journal Article: Understanding the Brazilian demand regime: a Kaleckian approach (2020)
Working Paper: Understanding the Brazilian demand regime: a Kaleckian approach (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:ipewps:732016

Access Statistics for this paper

More papers in IPE Working Papers from Berlin School of Economics and Law, Institute for International Political Economy (IPE) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().