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Profit Squeeze in the Duménil and Lévy Model

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  • Stephen Thompson

Abstract

This article looks at the implications of labor-supply limits and endogenous wage growth in the Duménil and Lévy model. A long-run relationship is established between the employment rate and capitalists’ decisions to reinvest profits. Elements of a Marxian approach to macroeconomic policy are sketched. New conditions are derived for being Kaleckian/Keynesian in the short run and classical Marxian in the long run.

Suggested Citation

  • Stephen Thompson, 2018. "Profit Squeeze in the Duménil and Lévy Model," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(2), pages 297-316, June.
    • Handle: RePEc:sae:reorpe:v:50:y:2018:i:2:p:297-316
    DOI: 10.1177/0486613417701265
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    References listed on IDEAS

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    More about this item

    Keywords

    classical Marxian; Goodwin class struggle model; profit squeeze; reserve army of labor; socialization of investment;
    All these keywords.

    JEL classification:

    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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