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

197
views

72
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...
The causal relationship between energy consumption and economic growth Çevirgen, Banu; Erdil, Erkan; Department of Economics (2008) The causal relationship between energy consumption and economic growth has been a controversial subject of the empirical literature. However, there is no common consensus neither on the existence nor on the direction of the causal relationship between energy consumption and economic growth. The purpose of this study is to investigate the causal relationship between energy consumption and economic growth using a consistent data set. Recently developed Granger causality tests in panel data models are used to ...
The dominance of the dollar and its sustainability in the international monetary system Köse, Tekin; Ege, Aylin; Department of Economics (2008) The aim of this thesis is to analyze and evaluate the dominance of the dollar and its sustainability in the international monetary system in the light of recent literature and relevant statistical data. Considering the determinants of an international currency, this thesis focuses on the linkages of the dominance of the dollar with the challenge of the euro as an alternative international currency, the current account deficit of the U.S. and foreign exchange reserve accumulation and reserve diversification ...
Financial development and energy consumption in emerging markets: Smooth structural shifts and causal linkages Durusu-Ciftci, Dilek; Soytaş, Uğur; NAZLIOĞLU, ŞABAN (Elsevier BV, 2020-03-01) This study examines the dynamic interrelationships among financial development, energy consumption, and economic growth in emerging markets by focusing on accounting for structural changes in causal linkages. We first employ the Toda-Yamamoto causality framework and then augment it with a Fourier approximation which captures structural shifts as a gradual/smooth process. The empirical findings show that taking into account gradual structural shifts matters for the causal linkages between financial developme...
Income and Education in Turkey A multivariate analysis Sarı, Ramazan; Soytaş, Uğur (Informa UK Limited, 2006-01-01) Although the role of education in an economy is emphasized in theoretical studies, empirical literature finds mixed results for the relationship between growth and education. We examine the relationship between Gross Domestic Product (GDP) and enrollments in primary, secondary, and high schools, as well as universities in Turkey for 1937-1996, in a multivariate framework. We find that real GDP and educational variables are cointegrated. We also discover different directions of Granger causality between diff...

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.