Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/181472
Authors: 
Stockhammer, Engelbert
Rabinovich, Joel
Reddy, Niall
Year of Publication: 
2018
Series/Report no.: 
FMM Working Paper 14
Abstract: 
Most empirical macroeconomic research limited to the period since World War II. This paper analyses the effects of changes in income distribution and in private wealth on consumption and investment covering a period from as early as 1855 until 2010 for the UK, France, Germany and USA, based on the dataset of Piketty and Zucman (2014). We contribute to the post-Keynesian debate on the nature of demand regimes, mainstream analyses of wealth effects and the financialisation debate. We find that overall domestic demand has been wage-led in the USA, UK and Germany. Total investment responds positively to higher wage shares, which is driven by residential investment. For corporate investment alone, we find a negative relation. Wealth effects are found to be positive and significant for consumption in the USA and UK, but weaker in France and Germany. Investment is negatively affected by private wealth in the USA and the UK, but positively in France and Germany.
Subjects: 
historical macroeconomics
demand regimes
Bhaduri-Marglin model
wealth effects
financialisation
JEL: 
B50
E11
E12
E20
E21
N10
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size





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