A neoclassical Kaldor model of real wage declines

A neoclassical Kaldor model of real wage declines

A model linking macroeconomic equilibrium and income distribution in balanced growth equilibria is developed as a variant to the Kaldor model of factor shares. It departs from the original Kaldor model in assuming equal saving rates and a neoclassical production function. Macroeconomic equilibrium (...

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Veröffentlicht in:Journal of economic inequality 2005-08, Vol.3 (2), p.91-108
1. Verfasser: Sattinger, Michael
Format: Artikel
Sprache:eng
Schlagworte:
Consumer Price Index
Economic growth
Economic models
Economic theory
Employment
Equilibrium
GDP
Gross Domestic Product
Growth models
Growth rate
Income distribution
Inequality
Interest rates
Labor force
Labor supply
Macroeconomics
National debt
Production functions
Productivity
Profits
Real wages
Studies
Tax increases
Taxes
Wage rates
Wages & salaries
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Beschreibung
Zusammenfassung:A model linking macroeconomic equilibrium and income distribution in balanced growth equilibria is developed as a variant to the Kaldor model of factor shares. It departs from the original Kaldor model in assuming equal saving rates and a neoclassical production function. Macroeconomic equilibrium (national savings equal to investment) combines with competitive microeconomic behavior to determine the real wage and real interest rate. An increase in the ratio of national debt to labor reduces the real wage, explaining recent declines. [PUBLICATION ABSTRACT]
ISSN:1569-1721
1573-8701
DOI:10.1007/s10888-005-1088-5