Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/203907 
Authors: 
Year of Publication: 
2007
Series/Report no.: 
wiiw Working Paper No. 42
Publisher: 
The Vienna Institute for International Economic Studies (wiiw), Vienna
Abstract: 
This paper examines how variable output and profit share jointly determine investment and saving, while the difference between investment and saving determines the changes in output and profit share. Analysis of the resulting pair of differential equations yields novel implications for the multiplier process. In this more general framework a number of separate strands of the Keynesian inspired literature can be understood. In particular the model incorporating both forced saving and profit squeeze analyses stability of the dynamical system to bring out the complex relation between in- and out-of-equilibrium profit- and wage-led regimes.
Subjects: 
profit-led
wage-led
in- and out-of-equilibrium dynamics
local
Liapunov stability
stable-unstable bifurcation
forced saving
profit squeeze
multiplier
JEL: 
B22
C62
D33
E12
E22
E31
Document Type: 
Working Paper

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