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A Macroeconomic Condition of Class Society

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  • Nakajima, Tetsuya

Abstract

This paper clarifies a macroeconomic condition, under which households are divided between a working class and an asset-owner class. Constructing a Keynesian model, we find that if aggregate savings from profits exceed aggregate investment, workers cannot accumulate their assets, and consequently a class society is established.

Suggested Citation

  • Nakajima, Tetsuya, 2018. "A Macroeconomic Condition of Class Society," MPRA Paper 90785, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:90785
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    File URL: https://mpra.ub.uni-muenchen.de/90785/1/MPRA_paper_90785.pdf
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    References listed on IDEAS

    as
    1. Oded Galor & Omer Moav, 1999. "From Physical to Human Capital Accumulation: Inequality in the Process of Development," Working Papers 99-27, Brown University, Department of Economics.
    2. Hollander, Heinz, 1988. "Increasing Returns and the Foundations of Unemployment Theory: A Note," Economic Journal, Royal Economic Society, vol. 98(389), pages 165-171, March.
    3. Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(4), pages 1001-1026.
    4. Moav, Omer, 2002. "Income distribution and macroeconomics: the persistence of inequality in a convex technology framework," Economics Letters, Elsevier, vol. 75(2), pages 187-192, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Effective Demand; Keynesian; Employment Rate; Underemployment; Wage Share; Working Class;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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