OECD demand regimes (1960-2000)
AbstractReal wage growth restraint is generally regarded as a necessary condition for sustained gross domestic product growth and lower unemployment in the Organization for Economic Cooperation and Development (OECD). We use a general Keynesian growth model, allowing demand growth to be wage led or profit led, to argue that the case for real wage restraint is based on weak foundations. The model is applied to eight OECD countries (1960-2000). We find that (1) demand is wage led in France, Germany, Italy, the Netherlands, Spain, and the United Kingdom, and (2) the decline in world trade growth is the dominant cause of sluggish growth in all economies, including profit-led Japan and the United States.
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Bibliographic InfoArticle provided by M.E. Sharpe, Inc. in its journal Journal of Post Keynesian Economics.
Volume (Year): 29 (2007)
Issue (Month): 2 (January)
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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=109348
demand-led growth; OECD unemployment; wage-led and profit-led demand regimes;
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- Eckhard Hein & Artur Tarassow, 2010.
"Distribution, aggregate demand and productivity growth: theory and empirical results for six OECD countries based on a post-Kaleckian model,"
Cambridge Journal of Economics,
Oxford University Press, vol. 34(4), pages 727-754.
- Eckhard Hein & Artur Tarassow, 2008. "Distribution, aggregate demand and productivity growth - theory and empirical results for six OECD countries based on a Post-Kaleckian model," IMK Working Paper 18-2008, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
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- Eckhard Hein & Nina Dodig, 2014.
"Financialisation, distribution, growth and crises – long-run tendencies,"
wpaper23, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
- Hein, Eckhard & Dodig, Nina, 2014. "Financialisation, distribution, growth and crises: Long-run tendencies," IPE Working Papers 35/2014, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
- Özlem Onaran & Engelbert Stockhammer & Lukas Grafl, 2009. "The finance-dominated growth regime, distribution, and aggregate demand in the US," Department of Economics Working Papers wuwp126, Vienna University of Economics, Department of Economics.
- Eckhard Hein & Marc Lavoie & Till van Treeck, 2011.
"Some instability puzzles in Kaleckian models of growth and distribution: a critical survey,"
Cambridge Journal of Economics,
Oxford University Press, vol. 35(3), pages 587-612.
- Eckhard Hein & Marc Lavoie & Till van Treeck, 2008. "Some instability puzzles in Kaleckian models of growth and distribution: A critical survey," IMK Working Paper 19-2008, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
- Hein, Eckhard, 2011.
"Distribution, ‘Financialisation’ and the Financial and Economic Crisis – Implications for Post-crisis Economic Policies,"
31180, University Library of Munich, Germany.
- Hein, Eckhard, 2011. "Distribution, 'financialisation' and the financial and economic crisis: Implications for post-crisis economic policies," IPE Working Papers 09/2011, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
- Hein, Eckhard & Truger, Achim, 2013. "Future fiscal and debt policies: Germany in the Context of the European Monetary Union," IPE Working Papers 24/2013, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
- Eckhard Hein & Achim Truger, 2013. "Fiscal Policy and Rebalancing in the Euro Area: A Critique of the German Debt Brake from a Post-Keynesian Perspective," Economics Working Paper Archive wp_776, Levy Economics Institute.
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