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Full-Text Articles in Economics
The Correlates Of Rentier Returns In Oecd Countries, Arjun Jayadev, Gerald Epstein
The Correlates Of Rentier Returns In Oecd Countries, Arjun Jayadev, Gerald Epstein
PERI Working Papers
This paper examines the correlates of rentier returns – returns to the ownership of financial assets -- in a sample of OECD countries between 1960 and 2000. We develop a simple bargaining model among three classes – industrial capitalists, rentiers and workers – and show that rentier income returns increase when domestic and foreign real interest rates costs of capital mobility fall, and the power of labor declines. Using an unbalanced panel dataset, the paper also econometrically investigates the impacts of proxies for these variables on rentier incomes. We find that interest rate liberalization, the reduction in the unionization rate …
Some Stylized Facts On The Finance-Dominated Accumulation Regime, Engelbert Stockhammer
Some Stylized Facts On The Finance-Dominated Accumulation Regime, Engelbert Stockhammer
PERI Working Papers
While there is an agreement that the Fordist accumulation regime has come to an end in the course of the 1970s, there is no agreement on how to characterize the post-Fordist regime (or if a such is already in place). The paper seeks put together various arguments related to financialization (in the broad sense) from a macroeconomic point of view and investigate the relevance of these arguments by means of an analysis stylized facts for EU countries. The paper discusses changes in investment behaviour, consumption behaviour and government expenditures, investigating to what extent changes are related to financialization. Households experience …
Macroeconomic Implications Of Financialization, Peter Skott, Soon Ryoo
Macroeconomic Implications Of Financialization, Peter Skott, Soon Ryoo
Economics Department Working Paper Series
A growing literature suggests that ‘financialization’ may weaken the performance of non-financial corporations and constrain the growth of aggregate demand. This paper evaluates (some of) the claims that have been made using two alternative approaches (one derived from Skott (1981, 1988, 1989) and one from Lavoie and Godley (2001-2002)) and two different settings (a labor-constrained setting and a dual-economy setting). All models are in a structuralist / post Keynesian tradition and pay explicit attention to financial stock-flow relations. The results are insensitive to the precise specification of household saving behavior but depend critically on the labor market assumptions (labor-constrained vs. …
Financialization And Capital Accumulation In The Non-Financial Corporate Sector: A Theoretical And Empirical Investigation Of The U.S. Economy: 1973-2003, Özgür Orhangazi
Financialization And Capital Accumulation In The Non-Financial Corporate Sector: A Theoretical And Empirical Investigation Of The U.S. Economy: 1973-2003, Özgür Orhangazi
PERI Working Papers
Recent research has explored the growing ‘financialization’ process in the U.S. and other advanced economies. The term is a catch-all phrase used to denote important changes in the structure of non-financial corporations’ balance sheets, including the growth of income from financial subsidiaries and investment as well as growth in the transfer of earnings to financial markets in the forms of interest payments, dividend payments and stock buybacks. This paper seeks to empirically explore the relationship between financialization in the U.S economy and real investment at the firm level. Using data from a sample of non-financial corporations from 1973 to 2003, …
Financialization: What It Is And Why It Matters, Thomas I. Palley
Financialization: What It Is And Why It Matters, Thomas I. Palley
PERI Working Papers
Financialization is a process whereby financial markets, financial institutions and financial elites gain greater influence over economic policy and economic outcomes. Financialization transforms the functioning of economic system at both the macro and micro levels. Its principal impacts are to (1) elevate the significance of the financial sector relative to the real sector; (2) transfer income from the real sector to the financial sector; and (3) increase income inequality and contribute to wage stagnation. Additionally, there are reasons to believe that financialization may render the economy prone to risk of debt-deflation and prolonged recession. Financialization operates through three different conduits: …