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Kalecki and the Determinants of the Profit Rate in the United States

Author

Listed:
  • Erdogan Bakir
  • Al Campbell

Abstract

The Weisskopfian approach has dominated empirical studies of the US rate of profit for the last thirty-five years. Forty-five years earlier, Michal Kalecki developed a different frame suitable for empirical profit rate studies, which had the potential to give different, but complementary, insight into the profit rate analysis based on the Weisskopfian approach. This paper first presents a development of the Kaleckian frame. It then applies this frame to the US economy and presents some preliminary empirical results.

Suggested Citation

  • Erdogan Bakir & Al Campbell, 2016. "Kalecki and the Determinants of the Profit Rate in the United States," Review of Radical Political Economics, Union for Radical Political Economics, vol. 48(4), pages 577-587, December.
    • Handle: RePEc:sae:reorpe:v:48:y:2016:i:4:p:577-587
    DOI: 10.1177/0486613416665835
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    References listed on IDEAS

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    1. 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.
    2. Sergio Cámara Izquierdo, 2014. "The role of long and short-term dynamics of the US rate of profit in the current crisis," International Journal of Management Concepts and Philosophy, Inderscience Enterprises Ltd, vol. 8(1), pages 1-22.
    3. Bhaduri, Amit & Robinson, Joan, 1980. "Accumulation and Exploitation: An Analysis in the Tradition of Marx, Sraffa and Kalecki," Cambridge Journal of Economics, Oxford University Press, vol. 4(2), pages 103-115, June.
    4. Weisskopf, Thomas E, 1979. "Marxian Crisis Theory and the Rate of Profit in the Postwar U.S. Economy," Cambridge Journal of Economics, Oxford University Press, vol. 3(4), pages 341-378, December.
    5. S Jay Levy, 2001. "Profits: The Views of Jerome Levy and Michal Kalecki," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 24(1), pages 17-30, September.
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    More about this item

    Keywords

    US profit rate; Kalecki; business cycles; dissaving;
    All these keywords.

    JEL classification:

    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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