
Premiere Collection 45 Growth, Cycles, and Distribution
: A Kaleckian Approach
Hiroaki Sasaki
216mmx154mmx13mm hard 194 pages JPY 3,500
ISBN: 9784876983940 pub. date: 03/14

description
How does a change in income distribution between wages and profits affect output, employment, and economic growth? Why does a capitalist economy experience economic growth accompanied with business cycles? Based on the Kaleckian model that is a kind of post Keynesian model, this book extends it and presents a new framework. The Kaleckian model emphasizes the relationship between income distribution and output/growth, and has an advantage in that it easily investigates the effect of a change in income distribution on output/growth. However, many critics assert that the Kaleckian model is a shortrun model but not a longrun model. A disequilibrium macrodynamic model presented in this book overcomes the criticism and can consistently explain the short run, medium, run and long run. The framework of this book simultaneously explains economic growth and cyclical fluctuations that are essentials in capitalist economies. The basic model of this book shows great originality in that it incorporates certain elements from Goodwin (the dynamics of the employment rate and income distribution), Kalecki (an investment function independent of savings and markup pricing in oligopolistic goods markets), and Marx (the reserve army and reserve army creation effects). Moreover, this book covers a broad range of topics such as regular and nonregular employment, a minimum wage policy, and international competition as well as topics of wageled and profitled that are frequently investigated by Kaleckian researchers.
table of contents
Acknowledgements
Preface
1 Preliminaries
1.1 The Kaleckian model
1.1.1 Shortrun model
1.1.2 Mediumrun model
1.1.3 Longrun model
1.2 Shortrun model
1.2.1 Adjustment of capacity utilization: Version 1
1.2.2 Determination of income distribution: Version 2
Part 1: Mediumrun Kaleckian Models
2 Endogenous Technological Change, Income Distribution, and Unemployment with InterClass Conflict
2.1 Introduction
2.2 Basic framework of the model
2.2.1 Adjustment in the capital accumulation rate
2.2.2 Adjustment in the profit share
2.2.3 Adjustment in the growth rate of labor productivity
2.3 Existence and stability of the longrun equilibrium
2.3.1 Existence of the longrun equilibrium
2.3.2 Local stability of the longrun equilibrium
2.4 Numerical examples
2.5 Comparative statics analysis
2.6 Concluding remarks
Appendix 2.A: Determination of the equilibrium capacity utilization rate
Appendix 2.B: Determination of the equilibrium growth rate of labor productivity
3 Cyclical Growth in a GoodwinKaleckiMarx Model
3.1 Introduction
3.2 Basic framework of the model
3.3 Longrun equilibrium analysis
3.3.1 Existence of the longrun equilibrium
3.3.2 Local stability of the longrun equilibrium
3.3.3 Existence of closed orbits
3.3.4 Comparative statics analysis
3.4 Numerical simulations
3.4.1 Case 1 (wageled growth): β < γ, Γ < 0
3.4.2 Case 2 (profitled growth): β > γ, Γ < 0
3.5 Concluding remarks
Appendix 3.A: Effects of a rise in parameters on the longrun equilibrium values
Part 2: Longrun Kaleckian Models
4 Conflict, Growth, Distribution, and Employment: A Longrun Kaleckian Model
4.1 Introduction
4.2 Mediumrun analysis
4.2.1 Framework of the model
4.2.2 Dynamics of the capacity utilization rate, the profit share, and the employment rate
4.2.3 Mediumrun equilibrium
4.2.4 Comparative statics in the mediumrun equilibrium
4.3 Longrun analysis
4.3.1 Dynamics of the normal capacity utilization rate and the expected rate of growth
4.3.2 Longrun equilibrium
4.3.3 Comparative statics in the longrun equilibrium
4.3.4 Numerical examples
4.4 Conclusion
Appendix 4.A: Endogenizing the target profit shares of workers and firms
Appendix 4.B: Derivation of the mediumrun equilibrium profit share
Appendix 4.C: Local stability of the mediumrun equilibrium
Appendix 4.D: Mediumrun comparative statics analysis
4.4.1 A rise in A
4.4.2 A rise in s
4.4.3 A rise in n
Appendix 4.E: Derivation of equation (4.22)
Appendix 4.F: Convergence and pathdependency in the fivedimensional system with relatively small initial values (Case 1)
Appendix 4.G: Convergence and pathdependency in the fivedimensional system with relatively large initial values (Case 2)
5 Is the Longrun Equilibrium Wageled or Profitled? A Kaleckian Approach
5.1 Introduction
5.2 Mediumrun equilibrium
5.2.1 Mediumrun with Kaleckitype investment function
5.2.2 Mediumrun analysis with MBtype investment function
5.2.3 Mediumrun comparative statics analysis
5.3 Longrun equilibrium
5.3.1 Kaleckitype investment function
5.3.2 MBtype investment function
5.3.3 Summary
5.4 Conclusions
Appendix 5.A: Mediumrun equilibrium profit share: Kaleckitype investment function
Appendix 5.B: Mediumrun equilibrium profit share: MBtype investment function
Appendix 5.C: Local stability of the mediumrun equilibrium: Kaleckitype investment function
Appendix 5.D: Local stability of the mediumrun equilibrium: MBtype investment function
Appendix 5.E: Numerical examples in the long run: MBtype investment function
Part 3: Extended Shortrun Kaleckian Models
6 The Macroeconomic Effects of the Wage Gap between Regular and NonRegular Employment and of Minimum Wages
6.1 Introduction
6.2 The model
6.3 Characteristics of the steady state equilibrium and its stability
6.3.1 Characteristics of the steady state equilibrium
6.3.2 The stability of the steady state equilibrium
6.4 Introduction of minimum wages
6.4.1 The case of a profitled demand regime
6.4.2 The case of a wageled demand regime
6.5 Concluding remarks
Appendix 6.A: Introducing induced technical change
10 list of figures
7 International Competition and Distributive Class Conflict in an Open Economy Kaleckian Model
7.1 Introduction
7.2 Model
7.2.1 Dynamics of capacity utilization
7.2.2 Dynamics of the profit share
7.2.3 Dynamics of the real exchange rate
7.3 Dynamics of the model
7.4 Comparative static analysis
7.4.1 Saving rate of capitalists
7.4.2 Bargaining powers of firms and workers
7.4.3 Target value of the real exchange rate
7.4.4 Summary
7.5 Conclusions
Appendix 7.A: Stability analysis and proofs of propositions
Appendix 7.B: Numerical simulations
Appendix 7.C: Closed economy model
References
Index
