IDEAS home Printed from https://ideas.repec.org/p/shf/wpaper/2011012.html
   My bibliography  Save this paper

Economic class and the distribution of income: A time-series analysis of the UK economy, 1955-2010

Author

Listed:
  • Juan Carlos Cuestas

    () (Department of Economics, The University of Sheffield)

  • Bruce Philp

    () (Division of Economics, Nottingham Trent University)

Abstract

This paper contributes to our understanding of the determinants and dynamics of a Marxian surplus-value rate using quarterly UK data, 1955-2010, and the Johansen (1988, 1991) cointegration and vector error correction model (VECM). A conceptual model is introduced to define surplus-value and its component parts, before elaborating on theoretical issues which are important in estimating the rate. In the empirical analysis we seek to explain distributive conflict, paying attention to three forces which are traditionally seen as drivers of power in distributional struggle: (i) political party; (ii) the size of the “reserve army” of the unemployed; (iii) working class militancy. Our results suggest a positive impact of unemployment on the rate of surplus-value, and that falling working class militancy tends to raise the rate. Political party also affects the rate of surplus-value with a negative impact on the rate emanating from movement to left-wing government. This analysis demonstrates the ongoing relevance of Marxian economics in providing an alternative, robust and significant explanation of distribution in the post-war UK economy.

Suggested Citation

  • Juan Carlos Cuestas & Bruce Philp, 2011. "Economic class and the distribution of income: A time-series analysis of the UK economy, 1955-2010," Working Papers 2011012, The University of Sheffield, Department of Economics, revised Apr 2011.
  • Handle: RePEc:shf:wpaper:2011012
    as

    Download full text from publisher

    File URL: http://www.shef.ac.uk/economics/research/serps/articles/2011_012.html
    File Function: First version, 2011
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Henrik Hansen & Søren Johansen, 1999. "Some tests for parameter constancy in cointegrated VAR-models," Econometrics Journal, Royal Economic Society, vol. 2(2), pages 306-333.
    3. John E Roemer, 2008. "Socialism vs Social Democracy as Income-Equalizing Institutions," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 34(1), pages 14-26, Winter.
    4. Philip Arestis & Malcolm Sawyer, 2005. "Aggregate demand, conflict and capacity in the inflationary process," Cambridge Journal of Economics, Oxford University Press, vol. 29(6), pages 959-974, November.
    5. Veneziani, Roberto, 2007. "Exploitation and time," Journal of Economic Theory, Elsevier, vol. 132(1), pages 189-207, January.
    6. Gouverneur, Jacques, 1990. "Productive Labour, Price/Value Ratio and Rate of Surplus Value: Theoretical Viewpoints and Empirical Evidence," Cambridge Journal of Economics, Oxford University Press, vol. 14(1), pages 1-27, March.
    7. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
    8. Gonzalo, Jesus, 1994. "Five alternative methods of estimating long-run equilibrium relationships," Journal of Econometrics, Elsevier, vol. 60(1-2), pages 203-233.
    9. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    10. Roemer, John E, 1982. "Exploitation, Alternatives and Socialism," Economic Journal, Royal Economic Society, vol. 92(365), pages 87-107, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Income Distribution; Political Party; Heterodox Economics;

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:shf:wpaper:2011012. 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: (Jacob Holmes). General contact details of provider: http://edirc.repec.org/data/desheuk.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.