Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/21240
Authors: 
Sattinger, Michael
Year of Publication: 
2001
Series/Report no.: 
IZA Discussion paper series 380
Abstract: 
A model linking macroeconomic phenomena and income distribution in balanced growth equilibria is developed as a variant to the Kaldor model of factor shares. It departs from the original Kaldor model in assuming equal savings rates and production determined by a matching process between workers and jobs. Macroeconomic equilibrium (national savings equal to investment) determines the ratio of jobs to employment and the ratio of unemployed to vacancies. Competitive microeconomic behavior then determines the wage and interest rates. Changes in the ratio of national debt to employment have real effects on factor prices. Implications for effects of taxes and unemployment benefits are derived. The model explains recent declines in real wages relative to productivity.
Subjects: 
Kaldor
real wage
interest rate
national debt
unemployment benefits
efficient taxation
matching
factor prices
JEL: 
D33
H2
E1
J31
Document Type: 
Working Paper

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