Accumulation Regimes, Endogenous Desired Rate of Capacity Utilization and Income Distribution

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Auteur principal: José Luis Oreiro
Format: Artículo científico
Langue:en
Publié: Universidad Nacional Autónoma de México 2004
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author José Luis Oreiro
author_facet José Luis Oreiro
contents Accumulation Regimes, Endogenous Desired Rate of Capacity Utilization and Income Distribution José Luis Oreiro Economía y Finanzas The objective of this article is to analyse the effects of the introduction of desiredrate of capacity utilisation in the macroeconomic structure of Post Keynesiangrowth models over the relation between income distribution, effective degreeof capacity utilisation and economic growth. In order to do so, we will supposethat desired rate of capacity utilisation is a decreasing function of profit share.This change in the macroeconomic structure will produce a short run equilibriumconfiguration of the economy in which there is two equilibrium levels of productivecapacity utilization and two equilibrium rates of growth. In this situation, anincrease in wage share can produce either an increase or a decrease in the effectivelevel of capacity utilization, depending on the initial value of this variable. Forthe long run equilibrium configuration of the economy, the endogenous treatmentof planned degree of productive capacity utilization will produce a change in thecausality relation between income distribution and economic growth. In our model,changes in the functional income distribution do not affect the growth rate ofcapital stock. In the long run, growth rate of capital stock is completely determinedby the “animal spirits” of the capitalists, not being affected by changes in incomedistribution between wages and profits. 2004 artículo científico 0185-1667 https://www.redalyc.org/articulo.oa?id=60124802 en http://www.redalyc.org/revista.oa?id=601 Investigación Económica application/pdf Universidad Nacional Autónoma de México Investigación Económica (México) Num.248 Vol.LXIII
format Artículo científico
id redalyc_60124802
institution Redalyc
language en
publishDate 2004
publisher Universidad Nacional Autónoma de México
spellingShingle Accumulation Regimes, Endogenous Desired Rate of Capacity Utilization and Income Distribution
José Luis Oreiro
Economía y Finanzas
Accumulation Regimes, Endogenous Desired Rate of Capacity Utilization and Income Distribution José Luis Oreiro Economía y Finanzas The objective of this article is to analyse the effects of the introduction of desiredrate of capacity utilisation in the macroeconomic structure of Post Keynesiangrowth models over the relation between income distribution, effective degreeof capacity utilisation and economic growth. In order to do so, we will supposethat desired rate of capacity utilisation is a decreasing function of profit share.This change in the macroeconomic structure will produce a short run equilibriumconfiguration of the economy in which there is two equilibrium levels of productivecapacity utilization and two equilibrium rates of growth. In this situation, anincrease in wage share can produce either an increase or a decrease in the effectivelevel of capacity utilization, depending on the initial value of this variable. Forthe long run equilibrium configuration of the economy, the endogenous treatmentof planned degree of productive capacity utilization will produce a change in thecausality relation between income distribution and economic growth. In our model,changes in the functional income distribution do not affect the growth rate ofcapital stock. In the long run, growth rate of capital stock is completely determinedby the “animal spirits” of the capitalists, not being affected by changes in incomedistribution between wages and profits. 2004 artículo científico 0185-1667 https://www.redalyc.org/articulo.oa?id=60124802 en http://www.redalyc.org/revista.oa?id=601 Investigación Económica application/pdf Universidad Nacional Autónoma de México Investigación Económica (México) Num.248 Vol.LXIII
title Accumulation Regimes, Endogenous Desired Rate of Capacity Utilization and Income Distribution
topic Economía y Finanzas
url https://www.redalyc.org/articulo.oa?id=60124802