Balance-of-payments-constrained Cyclical Growth with Distributive Class Conflicts and Productivity Dynamics

Nishi, Hiroshi (2018): Balance-of-payments-constrained Cyclical Growth with Distributive Class Conflicts and Productivity Dynamics.

Abstract

This study builds a dynamic balance-of-payments-constrained (BOPC) model that incorporates the endogenous determination of the economic growth rate, conflictive wage/price distribution, and employment rate. Following the Kaleckian--Marxian literature, wages and commodity prices are determined by the reserve army effect and employment is determined by the reserve army creation effect. The relative strength of these two effects generates different outcomes for the transitional dynamics and comparative statics analysis. In particular, the model shows stability, instability, and a cyclical nature, the latter of concurs with the evidence reported by previous empirical studies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Balance-of-payments-constrained model, Conflictive income distribution, Cyclical growth
• Subjects: E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E12 - Keynes ; Keynesian ; Post-Keynesian; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies

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