Demand-Led Growth, Income Distribution and Debt
DOI:
https://doi.org/10.33423/jabe.v22i3.2856Keywords:
Business, Economics, demand-led growth, wage-share, regime switching, Learning, Simulations, Instability, Income Distribution, DebtAbstract
The paper presents a medium-run growth model led by aggregate demand and coherent with minskian financial instability approach. The impact of wage share changes on growth and unemployment is studied within a dynamic framework, characterized by a regime switching technique and a learning mechanism. The model makes two main contributions to the debate: it shows the impact on actual growth, as well as the steady state. Secondly, it illustrates how instability generated by wage changes in a “bad” regime can accelerate the entrance in a “good” regime improving the overall rate of growth without necessarily causing instability in the large.
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Published
2020-07-29
How to Cite
Ferri, P., & Variato, A. M. (2020). Demand-Led Growth, Income Distribution and Debt. Journal of Applied Business and Economics, 22(3). https://doi.org/10.33423/jabe.v22i3.2856
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