Endogenous income distribution in the Bhaduri-Marglin model
AbstractThe results of the Bhaduri-Marglin model build on the assumption of an exogenous profit share. The present paper examines critically the robustness of these results by asking how its results change if we take the endogeneity of the profit share into account. In doing so, the constituents of the latter (labor productivity and the real wage rate) are treated as endogenous. The paper finds that the conditions for wage- and profit-led regimes only change when we assume increases in the real wage rate to be followed by very strong labor rationalization. Furthermore, the paper shows how these additional channels can increase or decrease the profit-led/wage-led character of a regime and how they may even become a source of instability.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Edward Elgar in its journal Intervention. European Journal of Economics and Economic Policies.
Volume (Year): 9 (2012)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.elgaronline.com/ejeep
Income distribution; wage-led/profit-led demand regimes; labor ra-tionalization;
Find related papers by JEL classification:
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Emily Milsom).
If references are entirely missing, you can add them using this form.