Income distribution and aggregate demand: a global Post-Keynesian model
Onaran, Özlem and Galanis, Giorgos (2013) Income distribution and aggregate demand: a global Post-Keynesian model. [Working Paper]
GPERC01_Onaran_GalanisF.pdf - Published Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.
This paper estimates the effects of a change in the wage share on growth at a national and global level in the G20 countries. A decrease in the wage share leads to lower growth in the euro area, Germany, France, Italy, UK, US, Japan, Turkey, and Korea, whereas it stimulates growth in Canada, Australia, Argentina, Mexico, China, India, and South Africa. However, a simultaneous decline in the wage share in all these countries leads to a decline in global growth. Furthermore, Canada, Argentina, Mexico, and India also contract when they decrease their wage-share along with their trading partners.
|Item Type:||Working Paper|
|Uncontrolled Keywords:||wage share; growth; global multiplier; consumption; investment; exports; imports; G20; developed and developing countries;|
|Subjects:||H Social Sciences > H Social Sciences (General)|
|Faculty / Department / Research Groups:||Faculty of Business > Greenwich Political Economy Research Centre (GPERC)|
|Last Modified:||19 Nov 2015 14:37|
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