Endogenous technological change,income distribution,and unemployment with inter-class conflict

This paper presents a Kaleckian growth model that incorporates endogenous technological change. The model endogenously determines the rate of capacity utilization, the rate of economic growth, income distribution, and the employment rate in addition to technological change. The paper shows that whether or not an increase in the relative bargaining power of workers raises the long-run equilibrium unemployment rate depends on which regime is realized in the long-run equilibrium. If, for example, the long-run equilibrium corresponds to the wage-led growth regime, a rise in the relative bargaining power of workers leads to a decline in the unemployment rate. This result is never obtained from the mainstream NAIRU model.     

Capital markets integration, growth and income distribution

The paper considers a two-country model of overlapping generation heterogenous economies with intergenerational transfers carried out in the form of bequest and investment in human capital. We examine in competitive equilibrium the transitory and long-run effects of capital markets integration. First, we explore how the regime of public education affects the dynamics of the integrated economy. Second, we study the effects of capital markets integration, in equilibrium, on the intragenerational income distribution in both the host and investing country.     

Fiscal policy,growth, income distribution and sociopolitical instability

This paper identifies the fiscal instruments that governments can use to promote economic growth when sociopolitical instability (SPI) is present. We show that fiscal policy that takes into account income distribution and SPI transforms a neoclassical growth model into one with both endogenous growth and a poverty trap. Under these circumstances, the growth rate of the economy depends upon SPI, fiscal policy and income distribution. The baseline level of SPI determines an economy's ability to grow. If SPI is high, the economy remains in a poverty trap even if fiscal policy instruments are set appropriately.     

Brain drain and income distribution

In a context in which increased income inequality has raised much concern, and skilled workers move easily across countries, an important question arises: how does the brain drain affect income distribution in the source economy? We address this question and introduce two contributions to the literature on brain drain. First, we present and solve a simple stylized model to study whether and, if so, how the brain drain affects the distribution of income, in a context in which higher education is publicly financed with general taxes. Second, we explore empirically the effect of an increase in skilled emigration on income distribution. A key prediction of our theoretical model is the existence of a non-monotonic relationship between income inequality and emigration of skilled workers. Our empirical data confirm this result, showing a statistically significant inverse U-shaped form.     

Functional income distribution and growth in Thailand: A post Keynesian econometric analysis

The aim of this article is to analyze the effect of the income distribution between labor and capital on the growth performance of Thailand from a post Keynesian view. It rests on the theoretical model of Bhaduri and Marglin (1990 Bhaduri, A., and Marglin, S. “Unemployment and the Real Wage: The Economic Basis for Contesting Political Ideologies.” Cambridge Journal of Economics, December 1990, 14 (4), 375–393.[Crossref], [Web of Science ®] , [Google Scholar]) to see if an increase in the labor income share has a sufficient positive effect on consumption to offset a negative effect on investment and export demand. In order to investigate the question empirically we adopt and develop the approach of Stockhammer, Onaran, and Ederer (2009 Stockhammer, E.; Onaran, Ö.; and Ederer, S. “Functional Income Distribution and Aggregate Demand in the Euro-area.” Cambridge Journal of Economics, 2009, 33 (1), 139–159.[Crossref], [Web of Science ®] , [Google Scholar]). Several measures of the labor income share are calculated to take into account the fact that wage labor represents only half of the total labor force and check the robustness of our results. We also introduce a new treatment of external trade to better integrate the price competitiveness of Thailand. The econometric investigation shows that the growth regime is profit-led over the period 1970–2011, which shows that rebalancing the Thai economy will be difficult and requires an overall change of strategy going beyond a simple prolabor policy.     

Dynamics of income distribution

In this paper, we have obtained closed-form solutions in Cass-Koopmans growth models with heterogeneous agents. The relationship between the form of the production function and the dynamics of income distribution is made explicit. We then use this relationship to determine what production structure is simultaneously consistent with facts on growth and income inequality. Our empirical findings give support to models with decreasing returns in the reproducible factor. JEL Classification: D3, O1, O4
Dans ce mémoire, les auteurs obtiennent des solutions pour des modèles de croissance à la Cass-Koopmans dans le cas où les agents sont hétérogènes. On explicite la relation entre la forme de la fonction de production et la dynamique de la répartition des revenus. On utilise alors cette relation pour déterminer quelle structure de production est arrimée aux faits connus à la fois quant à la croissance économique et à la répartition des revenus. Les résultats empiriques supportent les modèles où les rendements sur les acteurs de production reproductibles sont décroissants.     

Logistic regression and world income distribution

Using logistic regression, this paper studies the relationship between the high and nonhigh income countries and a set of indicators of human progress and economic growth. The results show that expenditure on education is the single most relevant factor helping economies to move in the direction of high income countries.     

Models of employment and income distribution

A compact form of the Taylor/Lysy model is presented. It consists of the commodity and factor price frontiers, the saving-investment equilibrium condition and the neoclassical relationship between relative factor prices and the capital intensity. Such compact form is underdetermined. Different ‘closure rules’ give rise to different equilibria, each with its own comparative static properties. The models resulting from a few simple ‘closure rules’ are examined, starting with the full employment, flexible price model, with accumulation of capital determined by available savings. In all cases, capital is fully utilized and financial assets are ignored.     

The effect on income distribution of development,the growth rate and economic strategy

An analysis of cross-section and time series data for 83 countries confirms some, and contradicts other work on income distribution. New findings include: a dualistic socio-political system is highly unfavorable for equality. Neither the extent of government intervention in the economy nor the rate of manufactured exports are systematically related to income distribution. The analysis confirms that there is no systematic relationship between equality and the rate of economic growth. Educational participation and a reduction in the share of primary exports in GDP are both favorable for equality. There is some support for the Kuznets hypothesis that inequality increases as per capita income rises to about $400 and then declines, with further income increase, but the empirical support is not strong and may be weakening over time. These findings lead to more optimistic conclusions then other work: that rapid growth in a mixed economy is quite consistent with unchanged, or even improved, income distribution, even at early stages of development.     

收入分配差距扩大背景下的经济增长问题研究

收入差距逐渐扩大是现阶段我国的实际,如何在收入差距扩大的背景下,保持我国经济的快速增长,是我们现阶段所面临的重大课题.从我国收入差距逐渐扩大的背景出发进行研究,并得出结论:保持经济稳步增长的条件是潜在的投资能力能够顺利地转化为现实的投资.为此,应从完善制度、促进民间投资、关注中小企业并减少其投资风险、开拓新的市场、促进投资的增加、完善社会保障制度等方面入手,促进经济增长.     

The firm's administrative structure: Theory,measurement and applications to growth accounting and income distribution

This paper attempts to analyze the implications of the organizational structure of the firms on economic growth and income distribution. The approach used byBeckmann [1977] is generalized and used explicitly as the starting point. The impact of the administrative structure on output growth is then studied using an extension of the Growth-Accounting-Method incorporating the quality of the labor force. Regarding income distribution it is shown that the coefficients of Pareto distributions can be obtained from the characteristics of the administrative structure. Their contribution to growth is evaluated.     

Political economy of income distribution dynamics

Income distribution varies considerably across countries; it tends to become more equal with development in some countries, but just the opposite occurs in other countries. This paper provides a theoretical investigation of the persistent differences in income distribution across countries over time. Motivated by the relationship between income distribution and public spending at different school levels for a broad range of countries over the past 30 years, the analysis centers on the role of public education where specific investments interact with political involvement by different socio-economic groups. Socio-economic groups may form lobbies to influence education policy making. The formation of lobbies is endogenous. Persistent inequality is caused by persistent lobbying efforts of the wealthy that lead to an allocation of public education spending more biased toward them.     

Endogenous time preference and optimal growth

We adapt the classic one-sector optimal growth model to include an endogenous rate of time preference along the lines of Becker and Mulligan (1997). The resulting model is both time-consistent and analytically tractable. Capital sequences are shown to be globally monotone and stable under very general circumstances using lattice programming techniques and value orders. We analyze a series of examples that exhibit a variety of behaviors, including closed-form solutions, unique steady-states, multiple steady-states, and conditionally sustained growth. The endogenous rate of discount preserves monotonicity and stability while allowing for the possibility of non-global convergence.I would like to thank Robert Becker, Leonard Mirman, Michael Kaganovich, Itzhak Zilcha, and an anonymous referee for helpful comments and discussions.     

The income distribution frontier and taxation of migrants

The output distribution frontier, which traces out the economy's output and income distribution options, is used to confirm and explain intuitively the Bhagwati—Hamada results on the taxation of migrants from LDCs by their native country. It is shown that freedom of migration without taxation may reduce the welfare of those who remain in the LDC, but that taxation and free migration can be superior for them to either prevention of migration or freedom of migration without taxation. An externalities argument shows why even migrants may benefit.     

Age-income profiles,income distribution and transition proportions

This paper presents a model to link age-income profiles, income distribution, and transition proportions. Transition proportions play a central role in the Markov-chain approach to income distribution. This stochastic model is much criticized, but it is shown in the paper that its most attractive characteristic can be maintained, while at the same time integrating it with a micro-economic foundation of age-income profiles. These profiles are inferred from capability development and individual choice. The model also analytically generates an income distribution.     

Tax progressivity, income distribution and tax non-compliance

This article examines the determinants of tax non-compliance when we recognise the existence of an imperfectly competitive “tax advice” industry supplying schemes which help taxpayers reduce their tax liability. We apply a traditional industrial organisation framework to model the behaviour of this industry. This tells us that an important factor determining the equilibrium price and hence, the level of non-compliance, is the convexity of the demand schedule. We show that in this context, this convexity is affected by the distribution of pre-tax income, the progressivity of the tax-schedule and the way in which monitoring and penalties vary with income. It is shown that lower pre-tax income inequality as well as a less progressive tax code may cause more tax minimisation activities. Therefore, the frequently advocated policy of reducing the highest tax rate may fail as a policy directed at improving tax discipline. One way of offsetting the possible harm to tax compliance from a less progressive tax could be an adjustment of the penalty and monitoring functions.     

Public sector employment and the distribution of income

In this paper a simple general equilibrium model is presented to examine the impact of three forces on the distribution of (labor) income: (i) changes in educational composition of the labor force; (ii) changes in productivity of different educational groups; and (iii) changes in the volume of public sector employment. A numerical illustration of the model based on observed and derived figures for the Netherlands suggests that the impact of a growing public sector on the distribution of income might very well be substantial, resulting into more inequality of income, while the combination of the other two forces has resulted in less inequality of income.     

Dual labor market hypothesis and long-run income distribution

We construct a dynamic model of dual labor market, incorporating firm investment behavior and household investment behavior on education. Education enhances the trainability of individuals and thus provides qualifications for entry into the primary market. Two specifications of the model, differing in the nature of the new entrants' market, are presented; one admitting competitive adjustment in the scarcity premium of qualified entrants, while the other, a generalization of Thurow's job competition model, allocates employment through rationing. We obtain sharply different long-run determinants of income distribution between these alternative models. The result extends and qualifies existing interpretations on the schooling paradox observed in the U.S.