Demand effects of the falling wage share in Austria

Stockhammer, Engelbert; Ederer, Stefan

doi:10.1007/s10663-008-9069-0

Cited by 63 publications

(30 citation statements)

References 16 publications

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“…But we cannot say beforehand that a higher profit share may be harmful to economic growth and, in the last instance, the prevalence of wage-led or profit-led regimes in particular countries remains an empirical question. What we know is that larger economies, such as Germany, France, and the USA, are more prone to be wage-led, according to the empirical evidence presented by a number of authors, such as Hein and Vogel (2008), Stockhammer, Onaran, and Ederer (2009), Naastepad and Storm (2007) and Stockhammer and Ederer (2008). However, there is a prevalence of profit-led regimes in smaller and more open economies, such as Austria and the Netherlands.…”

Section: Introductionmentioning

confidence: 99%

An empirical test of the Post-Keynesian growth model applied to functional income distribution and the growth regime in Brazil

Jesus

Araújo

Drumond

2017

International Review of Applied Economics

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The main purpose of this paper is to empirically investigate whether, between 1970 and 2008, the Brazilian economy was profit-led or wage-led. To this end, we approach a canonical post-Keynesian growth model (PKGM) to estimate certain vector autoregressive (VAR) models and perform Granger non-causality tests. Three main results are extracted from the generalized impulse-response functions provided by the VAR models. First, a positive profit-share innovation affects economic growth and capacity utilization rate, both in the same direction, suggesting a profit-led pattern. Second, a profit share shock positively affects both the ratio actual/potential output, and capital accumulation, reinforcing the previous result. Third, a capacity utilization shock is shown to positively affect both output growth and capital accumulation via the accelerator effect. On the one hand, the pairwise Granger non-causality test does not provide any evidence of causality running from profit share to economic growth or capacity utilization. On the other hand, there is some evidence of Granger causality running from profit share to capital accumulation. JEL CLASSIFICATION e12; e25; o40 ARTICLE HISTORY

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Section: Introductionmentioning

confidence: 99%

An empirical test of the Post-Keynesian growth model applied to functional income distribution and the growth regime in Brazil

Jesus

Araújo

Drumond

2017

International Review of Applied Economics

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“…Thus far, the main focus of empirical studies based on the Bhaduri-Marglin model has been on seven countries: Austria, France, Germany, Japan, the Netherlands, the U.K. and the U.S., see Bowles and Boyer (1995), Stockhammer and Onaran (2004), Naastepad (2006), Naastepad and Storm (2006/7), 11 Ederer and Stockhammer (2007), Stockhammer and Ederer (2008), Hein and Vogel (2008, 2009), Onaran et al (2011 From these studies, the broad picture emerges that the "demand regime in large and mediumsized open economies, as in Germany, France, the UK and the USA, tends to be wage-led,…”

Section: Empirical Methodologymentioning

confidence: 99%

Structural Change, Aggregate Demand and Employment Dynamics in the OECD, 1970-2010

Hartwig

2013

SSRN Journal

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“…The absolute value of the effect of an increase in the profit share in Germany and France is smaller than in the aggregate euro area; the net export effects are higher for the individual countries with a much higher export and import share in GDP due to trade with the other euro area countries as well as non-euro area countries. Previous studies show that small open economies in the euro area, such as the Netherlands and Austria, may be profit-led, when analysed in isolation Stockhammer and Ederer 2008). However the aggregated euro area is a rather closed economy with low levels of extra-EU trade, albeit a high intra-EU trade in which overall demand is wage-led.…”

Section: Summary Of the Empirical Findingsmentioning

confidence: 96%

Wage-led Growth

Lavoie¹,

Stockhammer²

2013

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An E q u i t a b l e S t r a t e g y f o r E c o n o mi c R e c o v e r y Ma r c L a v o i e a n d E n g e l b e r t S t o c k h a mme r Wage-led Growth Advances in Labour StudiesAdvances in Labour Studies is a wide-ranging series of research titles from the International Labour Office (ILO), offering in-depth analysis of labour issues from a global perspective. The series has an interdisciplinary flavour that reflects the unique nature of labour studies, where economics, law, social policy and labour relations combine. Bringing together work from researchers from around the world, the series contributes new and challenging research and ideas that aim both to stimulate debate and inform policy.

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Demand effects of the falling wage share in Austria

Abstract: Abstract

Cited by 63 publications

References 16 publications

An empirical test of the Post-Keynesian growth model applied to functional income distribution and the growth regime in Brazil

An empirical test of the Post-Keynesian growth model applied to functional income distribution and the growth regime in Brazil

Structural Change, Aggregate Demand and Employment Dynamics in the OECD, 1970-2010

Wage-led Growth

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