Structural Change and the Income Distribution: a Post-Keynesian disequilibrium model
This paper extends the out-of-equilibrium literature to analyse a structural transition characterized by the emergence of a new sector that satisfies a want lower in the hierarchical scale. In particular, the dynamic interaction demand-supply can be a source of multiple long-run outcomes if both preferences and the technology evolve endogenously. It will be shown that a successful transition to a two-sector economy is ensured by a balanced distribution of innovative rents. Moreover, the full-employment region lies between two regions of classical and Keynesian unemployment, in contrast with the standard view of a negative relationship between real wages and employment. Finally, demand shortages, due to an unbalanced distribution, can bring about a long-run slump.
|Date of creation:||2009|
|Date of revision:||2009|
|Contact details of provider:|| Web page: http://dipartimento.dse.uniroma1.it/economia/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Amendola, M. & Froeschle, C. & Gaffard, J. -L. & Lega, E., 2001. "Round-about production, co-ordination failure, technological change, and the wage-employment dilemma," Journal of Economic Behavior & Organization, Elsevier, vol. 46(1), pages 1-22, September.
- Mario Amendola & Jean-Luc Gaffard, 1998.
"Out of equilibrium,"
- Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March.
- Oded Galor & Joseph Zeira, 1993.
"Income Distribution and Macroeconomics,"
Review of Economic Studies,
Oxford University Press, vol. 60(1), pages 35-52.
- Wolff, Edward N., 2006. "Does Education Really Help?: Skill, Work, and Inequality," OUP Catalogue, Oxford University Press, number 9780195189964, May.
- Luc Wathieu, 2004. "Consumer Habituation," Management Science, INFORMS, vol. 50(5), pages 587-596, May.
- Peter Howitt, 1999. "Steady Endogenous Growth with Population and R & D Inputs Growing," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 715-730, August.
- Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-31, March.
- Kiminori Matsuyama, 2000.
"The Rise of Mass Consumption Societies,"
STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers
23, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Kiminori Matsuyama, 2000. "The rise of mass consumption societies," LSE Research Online Documents on Economics 6656, London School of Economics and Political Science, LSE Library.
- Kiminori Matsuyama, 1999. "The Rise of Mass Consumption Societies," Discussion Papers 1289, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Thomas Lemieux, 2007.
"The Changing Nature of Wage Inequality,"
NBER Working Papers
13523, National Bureau of Economic Research, Inc.
- Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
- Peretto, Pietro F, 1998.
"Technological Change and Population Growth,"
Journal of Economic Growth,
Springer, vol. 3(4), pages 283-311, December.
- Perotti, Roberto, 1996. "Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-87, June.
- Dew-Becker, Ian & Gordon, Robert J, 2008.
"The Role of Labour Market Changes in the Slowdown of European Productivity Growth,"
CEPR Discussion Papers
6722, C.E.P.R. Discussion Papers.
- Ian Dew-Becker & Robert J. Gordon, 2008. "The Role of Labor Market Changes in the Slowdown of European Productivity Growth," NBER Working Papers 13840, National Bureau of Economic Research, Inc.
- Nelson, Richard & Consoli, Davide, 2010.
"An Evolutionary Theory of Household Consumption Behavior,"
20197, University Library of Munich, Germany.
- Richard Nelson & Davide Consoli, 2010. "An evolutionary theory of household consumption behavior," Journal of Evolutionary Economics, Springer, vol. 20(5), pages 665-687, October.
- Mario Amendola & Francesco Vona, 2010.
"Technological Transitions and Educational Policies,"
Working Papers - Dipartimento di Economia
9, Dipartimento di Economia, Sapienza University of Rome, revised 2010.
- Mario Amendola & Francesco Vona, 2012. "Coordinating the accumulation of physical and human capital in different institutional settings," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(7), pages 631-653, October.
- Jean-Luc Gaffard & Francesco Saraceno, 2008.
"Tariffs, Trade and Unemployment in a Disequilibrium Model: issues and policies,"
- Jean-Luc Gaffard & Francesco Saraceno, 2008. "Tariffs, trade and unemployment in a disequilibrium model: issues and policies," Journal of Evolutionary Economics, Springer, vol. 18(2), pages 219-232, April.
- Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-84, August.
- Vona, Francesco & Patriarca, Fabrizio, 2011.
"Income inequality and the development of environmental technologies,"
Elsevier, vol. 70(11), pages 2201-2213, September.
- Francesco Vona & Fabrizio Patriarca, 2010. "Income Inequality and the Development of Environmental Technologies," Documents de Travail de l'OFCE 2010-22, Observatoire Francais des Conjonctures Economiques (OFCE).
- Ulrich Witt, 2001. "special issue: Learning to consume - A theory of wants and the growth of demand," Journal of Evolutionary Economics, Springer, vol. 11(1), pages 23-36.
- Pier Saviotti & Andreas Pyka, 2004. "Economic development by the creation of new sectors," Journal of Evolutionary Economics, Springer, vol. 14(1), pages 1-35, January.
- Edmund S. Phelps, 2007.
"Macroeconomics for a Modern Economy,"
American Economic Review,
American Economic Association, vol. 97(3), pages 543-561, June.
- Aoki, Masanao & Yoshikawa, Hiroshi, 2002. "Demand saturation-creation and economic growth," Journal of Economic Behavior & Organization, Elsevier, vol. 48(2), pages 127-154, June.
- J.S. Metcalfe, 2001. "special issue: Consumption, preferences, and the evolutionary agenda," Journal of Evolutionary Economics, Springer, vol. 11(1), pages 37-58.
- Peter Howitt, 1994. "Adjusting to Technological Change," Canadian Journal of Economics, Canadian Economics Association, vol. 27(4), pages 763-75, November.
- F. Patriarca & C. Sardoni, 2011. "Distribution and Growth: A Dynamic Kaleckian Approach," Economics Working Paper Archive wp_697, Levy Economics Institute.
When requesting a correction, please mention this item's handle: RePEc:des:wpaper:5. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sardoni)
If references are entirely missing, you can add them using this form.