This paper aims at empirically assessing the demand effects of changes in functional income distribution for the … Netherlands. Based on a Neo-Kaleckian theoretical macroeconomic model, equations for the main demand aggregates (consumption … increase in the wage share would have positive effects on consumption and affects investment and net exports negatively. The …

Kaleckian theory, which highlights that the domestic demand effect of a decline in the wage share will typically be … contractionary, whereas net exports will increase (Blecker 1989). The size of the foreign demand effect will critically depend on the … degree of openness of the economy. This paper aims at estimating empirically the demand side of a Bhaduri and Marglin (1990 …