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Power, Wages, and the Market: Kurt Rothschild’s Vision of Distribution in a Post-Keynesian Framework

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  • Hagen M. Krämer

    (Karlsruhe University of Applied Sciences)

Abstract

Kurt W. Rothschild, an Austrian economist known for his multiparadigmatic and inter¬discipli-nary approach, made significant contributions to Keynesian and post†Keynesian economic theory. Born in 1914 in Vienna, his work encompassed price theory, labor market economics, growth and distribution, power and ethics in economics, and economic policy. His incisive critique of neoclassical theories, advocacy for state intervention, and commitment to methodological pluralism distinguish his work as a vital contribution to economic thought. Since income distribution is a central theme in Rothschild’s research, this paper examines his contributions to post†Keynesian distribution theory. Following a brief overview of his life, academic formation, and the historical context that shaped his thinking, the paper explores his theoretical innovations, emphasizing his rejection of mono†causal explanations in favor of an approach that integrates economic, political, and social dynamics. Rothschild’s perspective on income distribution as a product of complex interactions between markets, institutions, power structures, and ongoing conflict is a defining feature of his work. The paper concludes by assessing the continued relevance of his insights for contemporary economic research. His legacy remains a guiding framework for scholars seeking a more holistic and dynamic understanding of income distribution and its policy implications.

Suggested Citation

  • Hagen M. Krämer, 2025. "Power, Wages, and the Market: Kurt Rothschild’s Vision of Distribution in a Post-Keynesian Framework," FMM Working Paper 118-2025, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    • Handle: RePEc:imk:fmmpap:118-2025
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    References listed on IDEAS

    as
    1. Rothschild, Kurt W., 2002. "The absence of power in contemporary economic theory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(5), pages 433-442.
    2. K. W. Rothschild, 1961. "Some Recent Contributions To A Macro-Economic Theory Of Income Distribution1," Scottish Journal of Political Economy, Scottish Economic Society, vol. 8(3), pages 173-199, November.
    3. L. R. Klein & R. F. Kosobud, 1961. "Some Econometrics of Growth: Great Ratios of Economics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 75(2), pages 173-198.
    4. Kurt Rothschild, 1985. "Some Notes on Weintraub’s Eclectic Theory of Income Shares," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 7(4), pages 575-593, July.
    5. Jan De Loecker & Jan Eeckhout & Gabriel Unger, 2020. "The Rise of Market Power and the Macroeconomic Implications [“Econometric Tools for Analyzing Market Outcomes”]," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(2), pages 561-644.
    6. Steindl, Josef, 1979. "Stagnation Theory and Stagnation Policy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 3(1), pages 1-14, March.
    7. J. E. King, 1995. "Conversations with Post Keynesians," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37882-7, December.
    8. Kurt W. Rothschild, 2004. "Der Heiligenschein ist angekratzt, aber der Neoliberalismus ist noch immer sehr stark. Interview mit Prof. Kurt W. Rothschild," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 1(2), pages 5-12.
    9. K. W. Rothschild, 1942. "Monopsony, Buying Costs, and Welfare Expenditure," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 10(1), pages 62-67.
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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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