Demand drives growth all the way: Goodwin, Kaldor, Pasinetti and the Steady State

2018 ◽  
Vol 43 (5) ◽  
pp. 1333-1352 ◽  
Author(s):  
Lance Taylor ◽  
Duncan K Foley ◽  
Armon Rezai
Keyword(s):  
Numerical Simulation ◽  
Steady State ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Wealth Inequality ◽  
Steady State Solution ◽  
Medium Term ◽  
Labour Productivity Growth ◽  
Long Run ◽  
Analysis Of Dynamics

Abstract A demand-driven alternative to the conventional Solow–Swan growth model is analysed. Its medium run is built around Marx–Goodwin cycles of demand and distribution. Long-run income and wealth distributions follow rules of accumulation stated by Pasinetti in combination with a technical progress function for labour productivity growth incorporating a Kaldor effect and induced innovation. An explicit steady state solution is presented along with analysis of dynamics. When wage income of capitalist households is introduced, the Samuelson–Modigliani steady state ‘dual’ to Pasinetti’s cannot be stable. Numerical simulation loosely based on US data suggests that the long-run growth rate is around 2% per year and that the capitalist share of wealth may rise from about 40 to 70% due to positive medium-term feedback of higher wealth inequality into its own growth.

Productivity Growth, Structural Change and Informality: The Case of Russia

2015 ◽  
pp. 30-61 ◽  
Author(s):  
I. Voskoboynikov ◽  
V. Gimpelson
Keyword(s):  
Structural Change ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Alternative Methods ◽  
Industry Effects ◽  
Labour Productivity Growth ◽  
Russian Economy ◽  
Negative Effect ◽  
Total Labour

This study considers the influence of structural change on aggregate labour productivity growth of the Russian economy. The term "structural change" refers to labour reallocation both between industries and between formal and informal segments within an industry. Using Russia KLEMS and official Rosstat data we decompose aggregate labour productivity growth into intra-industry (within) and between industry effects with four alternative methods of the shift-share analysis. All methods provide consistent results and demonstrate that total labour reallocation has been growth enhancing though the informality expansion has had a negative effect. As our study suggests, it is caused by growing variation in productivity levels across industries.

Improving management as a way to increase labour productivity

Upravlenie ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 24-30
Author(s):  
A. O. Ivanov
Keyword(s):  
Productivity Growth ◽  
Labour Productivity ◽  
Production Costs ◽  
Managerial Practices ◽  
Industrial Enterprises ◽  
Labour Productivity Growth ◽  
Period 2 ◽  
Main Factors ◽  
The Moment

The article gives an overview, performs analysis and classification of successful managerial practices applied at Russian industrial enterprises in the framework of the national project “Labour productivity and employment support”. The paper emphasizes the main factors of labour productivity growth as follows: investment policy, growth of human capital, and efficient use of managerial capital of enterprise. In order to determine the need of enterprises to increase labour productivity, the author proposes four universal criteria that signal the existing inefficiency even before the loss of competitiveness: 1) the dynamics of labour productivity in the company is not positive during a given period; 2) the company is behind competitors by labour productivity indicator; 3) the company is behind competitors by labour productivity growth rates indicator for a certain period; 4) unit production costs rise. These criteria allow you to take into account the situation both within the enterprise and in comparison with other enterprises. Each criteria can be considered separately or in combination with the others, applied to enterprises of different industries, specialization, and scale. Criteria indicate the direction of development in which the company is experiencing difficulties at the moment, or may experience them in the future.

scholarly journals ENDOGENOUS BORROWING CONSTRAINTS AND WEALTH INEQUALITY

2016 ◽  
Vol 20 (6) ◽  
pp. 1413-1431 ◽  
Author(s):  
Joydeep Bhattacharya ◽  
Xue Qiao ◽  
Min Wang
Keyword(s):  
Steady State ◽  
Credit Market ◽  
Wealth Inequality ◽  
Borrowing Constraints ◽  
Initial Distribution ◽  
The Other ◽  
Capital Investments ◽  
Loan Default ◽  
Long Run ◽  
Human Capital Investments

This paper studies the evolution of wealth inequality in an economy with endogenous borrowing constraints. In the model economy, young agents need to borrow to finance human capital investments but cannot commit to repaying their loans. Creditors can punish defaulters by banishing them permanently from the credit market. At equilibrium, loan default is prevented by imposing a borrowing limit tied to the borrower's inheritance. The heterogeneity in inheritances translates into heterogeneity in borrowing limits: endogenously, some borrowers face a zero borrowing limit, and some are partly constrained, whereas others are unconstrained. Depending on the initial distribution of inheritances, it is possible that all lineages are attracted either to the zero-borrowing-limit steady state or to the unconstrained-borrowing steady state—long-run equality. It is also possible that some lineages end up in one steady state and the rest in the other—complete polarization.

scholarly journals Services Sector in Lithuania: Labour Productivity as a Factor of Growth

Ekonomika ◽  
2008 ◽  
Vol 81 ◽  
Author(s):  
Jolanta Žemgulienė
Keyword(s):  
Growth Rate ◽  
Comparative Analysis ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Value Added ◽  
Service Industries ◽  
Services Sector ◽  
Labour Productivity Growth ◽  
Empirical Regularities ◽  
The Relationship

This paper examines the tendencies of Lithuanian services sector’s value added and labour productivity during 1995-2006. Comparative analysis of the average annual labour productivity growth in manufacturing and service industries reveals arguments supporting the W. Baumol’s consideration that there can be sporadic productivity increases in nonprogressive sectors. During 1995-2000, labour productivity growth in services exceeded productivity growth in manufacturing. The paper offers an interpretation of the Verdoom law for empirical regularities of the relationship between the cross-sectorial labour productivity growth rate and the value added growth rate.

Sign in / Sign up

Export Citation Format

Share Document