Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
988213 | Structural Change and Economic Dynamics | 2006 | 14 Pages |
Abstract
The paper studies the role of income distribution within a medium-scale macrodynamic model built in a Keynesian and Goodwinian tradition. Combining a wage and price Phillips curve, adjustments of an inflation climate, an IS relationship determining output, Okun's law for employment and the Taylor rule for monetary policy, a semi-structural model is obtained that incorporates the most important macroeconomic channels in a closed economy. After assessing the reasonable time series variabilities in stochastic simulations, a deeper analysis is concerned with the stabilizing and destabilizing effects of the model's parameters, and with a structural shift in income distribution. In many details of these investigations, the distinction between a wage-led and profit-led regime becomes important.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Reiner Franke, Peter Flaschel, Christian R. Proaño,