Profit rate in the US, 1949–2007: a Markov switching assessment |
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Authors: | Marcelo Resende |
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Institution: | Instituto de Economia, Universidade Federal do Rio de Janeiro, Rio de Janeiro, RJ, Brazil |
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Abstract: | The article investigates the growth in the general profit rate in the US during the 1949–2007 period with a Markov switching model. The evidence is consistent with a long swing with means displaying opposite signs under the two regimes (increasing or declining) and high degree of persistence within each regime. The results for this nonlinear approach reinforce previous empirical evidence that does not provide support for a systematic and declining tendency in profit rate as advanced in the Marxian literature. |
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Keywords: | Markov switching long swings declining tendency profit rate |
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