Income Distribution, Growth, and Conflict: The Aggregate Demand Nexus

Download

221-350-1-PB.pdf

Date

2008-6

Author

Onaran, Özlem

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

29
views

15
downloads

This paper is a literature review on the recent Post-Keynesian empirical findings about the effect of income distribution on investment and growth in a variety of different countries and aims at discussing the policy implications of this literature. The core question is the following: Are actual economies wageled or profit-led? Current orthodoxy implicitly assumes that they are profit-led, and thus supports the neoliberal policy agenda. The merit of the Post- Keynesian/Kaleckian models is that they highlight the dual function of wages as a component of aggregate demand as well as a cost item. If an economy is not profit-led, then there is room for policies targeting growth and income distribution simultaneously. However, the economies are indeed dynamic in the sense that beyond a point an economy can shift from a wage-led to a profit-led regime, with an intensified distributional conflict.

Subject Keywords

Distribution, Demand, Investment, Consumption, Foreign Trade, Macroeconomics, Keynesian Economics.

URI

https://hdl.handle.net/11511/58431

Journal

ODTÜ Gelişme Dergisi

Collections

Department of Economics, Article

Suggestions

OpenMETU
Core

Information frictions and the effects of news media bias on consumption / Aşçıoğlu, Mert; Voyvoda, Ebru; Department of Economics (2014) This thesis develops a model that incorporates information frictions and consumption behavior in order to explain the observations of higher volatility of consumption as well as its excess sensitivity to income in the developing countries. The information frictions in the model arise both from the information source, specified as the biased news media, and the conditions of the consumers that affect the costs they face in forming full information rational expectations. These two channels are argued to be mo...
Exchange Rate Regimes and Business Cycles: An Empirical Investigation Erdem, Fatma Pinar; Özmen, Erdal (2015-11-01) This paper empirically investigates the impacts of domestic and external factors along with exchange rate regimes (ERRs) on business cycles in a large panel of advanced and emerging market economies (EME). The results for classical business cycles suggest that EME tend to experience much deeper recessions and relatively steeper expansions during almost the same duration. The probability of expansions significantly increases with ERR flexibility. Our results strongly support floating ERR for both advanced an...
Financial development and energy consumption in emerging markets: structural shifts in causal linkages Durusu Çiftçi, Dilek; Soytaş, Uğur; Nazlıoğlu, Şaban (null; 2018-11-03) This study examines dynamic causal interrelationships among financial development, energy consumption, and economic growth in the emerging markets by focusing on accounting for structural changes in causal linkages. We first employ the Toda-Yamamoto causality framework and later augment it with Fourier approximation to account for structural shifts – including gradual/smooth shifts. The empirical findings show that accounting for gradual structural shifts matter for the causal linkages between financial dev...
Financial capital flows and economic growth: the Turkish case Kömürcüoğlu, Muammer; Akbostancı Özkazanç, Elif; Department of Economics (2010) This study analyzes the effect of capital outflows on economic growth though the channels described in sudden stop literature. Using the autoregressive distributed lag (ARDL) bounds testing approach; it is found that there is a cointegration between capital inflows, real exchange rate and real GDP. The results show that there is a significant positive long-run relation between capital inflows and growth. It is also found that capital inflows affect real output in the short run. The results show that real ex...
Income Expectations and Happiness: Evidence from British Panel Data Ekici, Tufan; Koydemir, Selda (2016-06-01) We analyze the impact of households' subjective current and future financial measures on their well-being by using three waves of a longitudinal data set-Understanding Society -from the UK. We use a fixed-effects regression method to get rid of individual heterogeneity, and find that even after controlling for some demographic characteristics, including equivalent household income, subjective measures of current and future financial well-being are still significant correlates of life satisfaction in UK hous...

Citation Formats

Ö. Onaran, “Income Distribution, Growth, and Conflict: The Aggregate Demand Nexus,” ODTÜ Gelişme Dergisi, vol. 35, no. 1, pp. 209–224, 2008, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/58431.