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"A Reassessment of the Use of Unit Labor Costs as a Tool for Competitiveness and Policy Analyses in India"

Felipe, Jesus; Kumar, Utsav - Levy Economics Institute - 2010

’s capital share increased from 40 to 74 percent over the same period. We also find that real wages have increased minimally … during the period analyzed—well below labor productivity—while the real profit rate and unit capital costs have increased … increase in unit capital costs. Our analysis questions policy recommendations that advocate wage moderation, which result from …

Persistent link: https://www.econbiz.de/10008678208

"What Do We Know About the Labor Share and the Profit Share? Part I: Theories"

Giovannoni, Olivier - Levy Economics Institute - 2014

This series of working papers explores a theme enjoying a tremendous resurgence: the functional distribution of income--the division of aggregate income by factor share. This first installment surveys some landmark theories of income distribution. Some provide a technology-based account of the...

Persistent link: https://www.econbiz.de/10010775075

"What Do We Know About the Labor Share and the Profit Share? Part II: Empirical Studies"

Giovannoni, Olivier - Levy Economics Institute - 2014

In this second part of our study we survey the rapidly expanding empirical literature on the determinants of the functional distribution of income. Three major strands emerge: technological change, international trade, and financialization. All contribute to the fluctuations of the labor share,...

Persistent link: https://www.econbiz.de/10010775077

"What Do We Know About the Labor Share and the Profit Share? Part III: Measures and Structural Factors"

Giovannoni, Olivier - Levy Economics Institute - 2014

points since 1980. This amounts to a transfer of $1.8 trillion from labor to capital in 2012 alone and brings the US labor …

Persistent link: https://www.econbiz.de/10010776492

"Distribution and Growth: A Dynamic Kaleckian Approach"

Patriarca, F.; Sardoni, C. - Levy Economics Institute - 2011

This paper studies the effects of an (exogenous) increase of nominal wages on profits, output, and growth. Inspired by an article by Michal Kalecki (1991), who concentrated on the effects on total profits, the paper develops a model that explicitly considers the dynamics of demand, prices,...

Persistent link: https://www.econbiz.de/10010627285

"The (Normal) Rate of Capacity Utilization at the Firm Level"

Nikiforos, Michalis - Levy Economics Institute - 2012

-minimizing firm has an incentive to increase the utilization of its capital if the rate of the returns to scale decreases as its …

Persistent link: https://www.econbiz.de/10010627288

"Fiscal Policy Effectiveness: Lessons from the Great Recession"

Tcherneva, Pavlina R. - Levy Economics Institute - 2011

This paper reconsiders fiscal policy effectiveness in light of the recent economic crisis. It examines the fiscal policy approach advocated by the economics profession today and the specific policy actions undertaken by the Bush and Obama administrations. An examination of the labor market...

Persistent link: https://www.econbiz.de/10008802542

"Fiscal Policy: Why Aggregate Demand Management Fails and What to Do about It"

Tcherneva, Pavlina R. - Levy Economics Institute - 2011

This paper argues for a fundamental reorientation of fiscal policy, from the current aggregate demand management model to a model that explicitly and directly targets the unemployed. Even though aggregate demand management has several important benefits in stabilizing an unstable economy, it...

Persistent link: https://www.econbiz.de/10008802543

"Unit Labor Costs in the Eurozone: The Competitiveness Debate Again"

Felipe, Jesus; Kumar, Utsav - Levy Economics Institute - 2011

competitiveness called unit capital costs as the ratio of the nominal profit rate to capital productivity. This has increased in all … eurozone face. If this is done, firms should also acknowledge that unit capital costs have increased significantly and thus …

Persistent link: https://www.econbiz.de/10008835432

"Effective Demand in the Recent Evolution of the US Economy"

Lopez-Gallardo, Julio; Reyes-Ortiz, Luis - Levy Economics Institute - 2011

We present strong empirical evidence favoring the role of effective demand in the US economy, in the spirit of Keynes and Kalecki. Our inference comes from a statistically well-specified VAR model constructed on a quarterly basis from 1980 to 2008. US output is our variable of interest, and it...

Persistent link: https://www.econbiz.de/10009148874