Arbeitspapier
Finance-dominated capitalism, re-distribution, household debt and financial fragility in a Kaleckian distribution and growth model
In a Kaleckian distribution and growth model with workers' debt we examine the short- and long-run effects of three stylized facts of 'finance-dominated capitalism': a fall in animal spirits of the firm sector with respect to real investment in capital stock, re-distribution of income at the expense of the wage share, and increasing lending of rentiers to workers for consumption purposes. In particular, we specify the conditions for long-run stability of the workers' debt-capital ratio. We thus identify the threshold for this ratio to turn unstable causing increasing financial fragility and finally financial crisis due to systemic stock-flow or stock-stock dynamics.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 11/2011
- Classification
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Wirtschaft
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Macroeconomics: Consumption; Saving; Wealth
Investment; Capital; Intangible Capital; Capacity
Aggregate Factor Income Distribution
One, Two, and Multisector Growth Models
- Subject
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Finance-dominated capitalism
distribution
household debt
financial fragility
growth
Kaleckian model
- Event
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Geistige Schöpfung
- (who)
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Hein, Eckhard
- Event
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Veröffentlichung
- (who)
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Hochschule für Wirtschaft und Recht Berlin, Institute for International Political Economy (IPE)
- (where)
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Berlin
- (when)
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2011
- Handle
- Last update
- 10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Hein, Eckhard
- Hochschule für Wirtschaft und Recht Berlin, Institute for International Political Economy (IPE)
Time of origin
- 2011
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