Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105933
Authors: 
Palley, Thomas I.
Year of Publication: 
2010
Series/Report no.: 
IMK Working Paper 9/2010
Abstract: 
This paper examines the effects of managerial pay on the Post Keynesian model of growth and distribution. Introducing managerial pay explains why economies may exhibit both wage- and profit-led characteristics in response to changed income distribution. Second, managerial pay undoes Pasinetti's (1961/2) theorem regarding the irrelevance of worker saving behavior for long run growth outcomes. Third, managerial pay links neo-classical Marxist theory with Post Keynesian growth theory. Neo-classical Marxists focus on why firms may choose inefficient production techniques. Similar logic carries over to Post Keynesian growth theory and firms may choose techniques that lower growth because they increase profits.
Subjects: 
Post Keynesian growth theory
managerial pay
neo-classical Marxism
JEL: 
E12
E25
O40
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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