IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-37178-1_12.html
   My bibliography  Save this book chapter

The Dynamics of Profit- and Wage-led Expansion: A Note

In: Wages, Employment, Distribution and Growth

Author

Listed:
  • Amit Bhaduri

Abstract

Any redistribution of income between profits and wages would have contradictory effects in terms of aggregate demand, so long as the propensities to consume are different for the two classes. For instance, the lowering of the real wage rate would tend to depress total consumption expenditure by redistributing income against the wage-earners with a higher propensity to consume. At the same time, it might also encourage investment by increasing the margin of profit per unit of sale. Depending on which effect dominates quantitatively, two alternative regimes or paths both led by demand emerge: the consumption-or wage-led path which has also been called ‘stagnationist’, and the investment-or profit-led path called ‘exhilarationist’ (Bhaduri and Marglin 1990; Marglin and Bhaduri 1990).

Suggested Citation

  • Amit Bhaduri, 2006. "The Dynamics of Profit- and Wage-led Expansion: A Note," Palgrave Macmillan Books, in: Eckhard Hein & Arne Heise & Achim Truger (ed.), Wages, Employment, Distribution and Growth, chapter 11, pages 247-253, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37178-1_12
    DOI: 10.1057/9780230371781_12
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Botte, Florian & Dallery, Thomas, 2019. "Analyse systématique du modèle de Bhaduri et Marglin à prix flexibles : « Ça dépend de la valeur des paramètres » [Systematic analysis of the Bhaduri-Marglin Model with flexible prices: « It depend," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 26.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-37178-1_12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.