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An Estimation of the Italian Banking Sector Profit Rate in a Crisis Period

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  • Zolea, Riccardo

Abstract

In this paper an attempt is made to calculate the profit rate of the banking sector, in order to compare it with that of other real productive sectors. Various techniques are used, highlighting the differences and commonalities among the results. The study suggests the use of a new methodology for calculating the banking and financial profit rate, based on central bank data. Furthermore, this study confirms some weakness in bank profitability in recent years, less visible using national accounts data. Furthermore, the evidence suggests the validation of certain insights from Marx's Book III of Capital.

Suggested Citation

  • Zolea, Riccardo, 2023. "An Estimation of the Italian Banking Sector Profit Rate in a Crisis Period," MPRA Paper 117579, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117579
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    File URL: https://mpra.ub.uni-muenchen.de/117579/9/An%20Estimation%20of%20the%20Italian%20Banking%20Sector%20Profit%20Rate%20in%20a%20Crisis%20Period.pdf
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    References listed on IDEAS

    as
    1. Shaikh, Anwar, 2016. "Capitalism: Competition, Conflict, Crises," OUP Catalogue, Oxford University Press, number 9780199390632.
    2. Deepankar Basu & Ramaa Vasudevan, 2013. "Technology, distribution and the rate of profit in the US economy: understanding the current crisis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 37(1), pages 57-89.
    3. Garegnani, Pierangelo, 1984. "Value and Distribution in the Classical Economists and Marx," Oxford Economic Papers, Oxford University Press, vol. 36(2), pages 291-325, June.
    4. Bowles, Samuel & Gordon, David M & Weisskopf, Thomas E, 1989. "Business Ascendancy and Economic Impasse: A Structural Retrospective on Conservative Economics, 1979-87," Journal of Economic Perspectives, American Economic Association, vol. 3(1), pages 107-134, Winter.
    5. Holland, Daniel M & Myers, Stewart C, 1980. "Profitability and Capital Costs for Manufacturing Corporations and All Nonfinancial Corporations," American Economic Review, American Economic Association, vol. 70(2), pages 320-325, May.
    6. Hyun Woong Park, 2021. "A division of the capitalist class and the market for money capital," Metroeconomica, Wiley Blackwell, vol. 72(1), pages 2-21, February.
    7. Dumenil, Gerard & Glick, Mark & Levy, Dominique, 1993. "The Rise of the Rate of Profit During World War II," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 315-320, May.
    8. Costas Lapavitsas & Ivan Mendieta-Muñoz, 2019. "Profitability trends in the era of financialization: Notes on the U.S. economy," Japanese Economy, Taylor & Francis Journals, vol. 45(1-2), pages 4-19, April.
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    More about this item

    Keywords

    Bank profit; bank crisis; banking rate of profit; data analysis;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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