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http://hdl.handle.net/10419/64182
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| Title: | | Comparative growth dynamics in a discrete-time Marxian circuit of capital model  |
| Authors: | | Basu, Deepankar |
| Issue Date: | | 2011 |
| Series/Report no.: | | Working Paper, University of Massachusetts, Department of Economics 2011-12 |
| Abstract: | | This paper develops a discrete-time formalization of the circuit of capital model presented by Marx in Volume II of Capital Marx (1993) as a tool for aggregate economic analysis of capitalist economies. The discrete-time formalization closely follows and extends the continuous-time formalization in Foley (1982, 1986a). The discrete-time model is used to address two important issues of interest to the heterodox economic tradition: profit-led versus wage-led growth, and the growth-reducing impact of non- production credit. First, it is demonstrated that both profit-led and wage-led growth regimes can be accommodated within the Marxian circuit of capital model. Second, it is demonstrated that the steady-state growth rate of a capitalist economy is negatively related to the share of consumption credit in total net credit, when the total credit is large to begin with. |
| Subjects: | | circuit of capital economic growth consumption credit Marxian political economy |
| JEL: | | B51 O1 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Working Papers, Department of Economics, University of Massachusetts
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