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Full-Text Articles in Social and Behavioral Sciences
‘Disarticulation’ As A Constraint To ‘Wage-Led Growth’ In Dual- Economies, Adam Aboobaker
‘Disarticulation’ As A Constraint To ‘Wage-Led Growth’ In Dual- Economies, Adam Aboobaker
Economics Department Working Paper Series
Much of the recent interest in the relationship between growth and distribution has focused on advanced economies and neglected issues of development and structural transformation. The purpose of this paper is to make a contribution to this gap by arguing that, even in the short-run, some of the conclusions from neo-Kaleckian models may not be robust to developing country contexts with extreme income inequality and correspondingly polarized patterns of consumption. This argument is supported by a review of, amongst other, Kalecki’s writing on development and a two-sector model building on Razmi et al (2012). The paper can be interpreted as …
Aggregate Demand Policy In Mature And Dual Economies, Peter Skott
Aggregate Demand Policy In Mature And Dual Economies, Peter Skott
Economics Department Working Paper Series
Aggregate demand is important, both in the short and the long run, but a basic distinction must be made between dual and mature economies. Mature economies may suffer from a structural aggregate problem ('secular stagnation'): full-employment growth may be impossible in the absence of sustained fiscal stimulus. Dual economies with high levels of open or hidden unemployment, by contrast, do not face long-run structural aggregate demand problems. They require public investment in key areas, including education and infrastructure, but the key problems concern the composition of demand and the need to expand the modern sector. These economies face structural transformation …