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on Post Keynesian Economics |
| By: | Sasaki, Hiroaki; Mizutani, Aya |
| Abstract: | In contemporary Japan, the realization of a virtuous cycle of growth and distribution (i.e., how the "new form of capitalism" should be) has been discussed. To examine the validity of economic policies suggested by the new form of capitalism, we present a Kaleckian model that considers the wage gap among workers and the retained earnings of firms, and investigate the effects of minimum wage, the rate of retained earnings, and profit sharing on growth and distribution. We reveal that a decrease in the rate of retained earnings and an increase in profit sharing do not lead to a virtuous cycle of growth and distribution, whereas a rise in the minimum wage increases the income share of workers and the economic growth rate. However, an increase in the minimum wage has a negative impact on employment, whereas a decline in the rate of retained earnings and an expansion of profit sharing have a positive effect. |
| Keywords: | growth and distribution; Kaleckian model; minimum wage; retained earnings; profit sharing; Japan's new form of capitalism |
| JEL: | E12 E25 J31 J53 |
| Date: | 2024–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121692 |
| By: | Sasaki, Hiroaki |
| Abstract: | This study builds a Kaleckian model that incorporates endogenous technological progress and investigates how a change in a parameter that directly fosters technological progress affects growth and distribution. In this model, there is an optimal wage share that maximizes the technological progress rate. Accordingly, if the actual wage share can be moved to an optimal level, the economic growth rate will increase. This analysis reveals that a policy that directly promotes technological progress consequently decreases the long-run equilibrium value of the wage share, the capacity utilization rate, the employment rate, and the economic growth rate. |
| Keywords: | endogenous technological progress; education; R\&D; growth and distribution |
| JEL: | E11 E12 E24 E25 O33 O41 |
| Date: | 2024–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121694 |
| By: | Bellanca, Nicolo' |
| Abstract: | These writings examine Claudio Napoleoni's reflections on the themes of the Marxist theory of value. In particular, they focus on the concepts of economic exploitation and alienation, documenting their evolution and demonstrating how these explorations aim to delineate a horizon of human emancipation. Finally, the fourth essay argues that Napoleoni's Marxist contributions are not distinct from his more concrete analyses of the Italian economy. In the 1960s, his reassessment of the concepts of productive labour and rent allowed him to argue that the social and political hegemony of redistributive coalitions constitutes Italy's main structural weakness and the primary cause of inequality and lack of inclusion. |
| Keywords: | Marxist theory of value; Claudio Napoleoni; Hanna Arendt; Alienation; Economic exploitation; Productive labour; Political economy; Italian economy |
| JEL: | B24 D72 E11 |
| Date: | 2024–04–19 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121789 |
| By: | Sasaki, Hiroaki; Asada, Yasukuni; Sonoda, Ryunosuke |
| Abstract: | This study extends Goodwin’s growth cycle model by considering low- and high- skilled workers. Using the parameters obtained from the Japanese economy data, we conduct numerical simulations to reproduce Japanese business cycles. We investigate how the introduction of the minimum wage share and reduction in the wage gap between low- and high-skilled workers affect the wage share and employment rates. The results reveal that introducing the minimum wage share diminishes the amplitude of the fluctuations in both the wage shares and employment rates of the two types of workers. Reducing the wage gap decreases the amplitude of fluctuations in the wage share and employment rate of high-skilled workers and increases the amplitude of fluctuations in the wage share and employment rate of low-skilled workers. |
| Keywords: | growth cycles; low- and high-skilled workers; minimum wage share; wage gap |
| JEL: | E24 E25 E32 |
| Date: | 2024–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121695 |
| By: | Jose Luis Oreiro |
| Abstract: | This paper aims to show that the political obstacles to the implementation of a new-developmentalist model in Brazil can be overcome by the reconstruction of a developmentalist class coalition like the one that emerged in Brazil after the 1930 Revolution led by Getúlio Vargas. The concept of class coalition was developed by Bresser-Pereira in his book "The Political Construction of Brazil". A class coalition is defined as the emergence of coalitions of interests between groups that belong to distinct social classes. A developmentalist coalition results from the perception on the part of urban workers, industrial entrepreneurs and government technocracy that their economic interests are not served by liberal policies, since they are incapable of generating economic development, being useful only to rentiers and the domestic and international financial interests. |
| Keywords: | New-Developmentalism, Class Coalition, Bresser-Pereira |
| JEL: | B31 O10 O11 O20 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2411 |
| By: | Fix, Blair |
| Abstract: | When it comes to rising house prices, nearly everyone has a theory about the cause. There’s ‘too much foreign money’. There are ‘too many immigrants’. There’s ‘too little construction’. And so on. What unites these explanations is that they appeal, in some way, to the idea that rising prices are caused by a mismatch between supply and demand. And surely that’s true, right? Yes, it is true … in the same way that death is caused by dying. But of course, that’s circular logic. And so it goes with ‘supply and demand’. Since prices are always caused by the interplay between what we want and what we can get, evoking ‘supply and demand’ leads us pretty much nowhere. Worse, it often puts the focus on short-term patterns, when the real scientific payoff lies in studying price trends over the long term. Speaking of the long term, many people assume that rising house prices are a recent problem. But in the United States, the pattern dates to the early 1970s. For almost a century before that, US house prices had been dropping against income. And so Americans treated their house like a ‘commodity’ — a thing they bought to live in. But from 1972 onward, house prices began to slowly appreciate against income. And so Americans started to treat their house like an ‘asset’. It’s this transformation — from commodity-like depreciation to asset-like appreciation — that is the real story of house prices. And the truth is that this story can’t be understood using popular scapegoats. To see why US house prices headed south and then north, we need to forget about supply and demand and instead, peer into the belly of industrialism. We need to ground house prices in the use of energy. Now, if going from prices to energy sounds like a non sequitur, I’ll show you why it makes sense. And I’ll show you how, when we bring debt into the energy fold, we can explain almost all of the historical variation in US house prices. The lesson here is simple yet disturbing. When it comes to rising house prices, the trend has less to do with a ‘supply crisis’, and more to do with basic physical limits to industrial supply chains. |
| Keywords: | assets, commodities, debt, distribution, housing, energy, price, United States |
| JEL: | P1 O18 R3 E3 E31 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:301792 |