Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174382
Authors: 
Ryoo, Soon
Year of Publication: 
2015
Series/Report no.: 
Working Paper No. 2015-09
Abstract: 
The paper examines the determinants of income and wealth inequality in a Kaldorian model where the profit share adjusts to clear the goods market and the long-run output-capital ratio is constant. The approach is radically different from both the mainstream approach that stresses properties of production function and the Kaleckian approach that emphasizes the long-run adjustment of utilization. The Kaldorian model is used to identify several developments that may have caused increasing inequality in income and wealth since the early 1980s, including the shift of the power relation in corporate firms in favor of top managerial pay, the decline in the retention rate, increasing share buybacks, rising indebtedness of lower-income households, and the stock market boom in the 1990s. In contrast to Piketty's explanation, the decline in the natural rate of growth reduces inequality of income and wealth in this Kaldorian framework.
Subjects: 
income and wealth distribution
managerial pay
financialization
stock-flow consistency
JEL: 
E12
E21
E25
E44
Document Type: 
Working Paper

Files in This Item:
File
Size
373.9 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.