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| Author(s): |
Eduardo Lederman Rawet
Total Authors: 1
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| Document type: | Master's Dissertation |
| Press: | São Paulo. |
| Institution: | Universidade de São Paulo (USP). Faculdade de Economia, Administração e Contabilidade (FEA/SBD) |
| Defense date: | 2018-08-29 |
| Examining board members: |
Laura Barbosa de Carvalho;
Fabio Neves Perácio de Freitas;
Gilberto Tadeu Lima;
Antonio Carlos Macedo e Silva
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| Advisor: | Laura Barbosa de Carvalho |
| Abstract | |
In a context in which wealth is increasly more concentrated Piketty (2014), it becomes essential to include this variable and its distribution to study the economic activity. Thus, in a Kaleckian approach with Stock Flow Consistent modelling, this thesis aims to investigate how the rate of utilization of capacity of firms related with income and wealth distributions. Papers aligned with post-Keynesian tradition has already shown attempts to understand these relations, first by Kaldor (1955) and Pasinetti (1962), in neo-Keynesian approach, nd more recently by Dutt (1990) and Palley (2012), in Kaleckian literature. The main in innovation of this thesis is to propose the inclusion the accumulation on financial wealth by workers and capitalists, while workers are nor allowed to accumulate capital stock. The proposed model has three classes, two of workers who share the total wages, and the capitalists, who earn profits. One of workers is high skilled and earns a higher wage. The high skilled workers have a propensity to consume out of disposable income smaller than one. Just like capitalists, who also have a positive propensity to save out of disposable income, high skileed workers accumulate wealth as public bonds, which provide financial income as interest, and as money. Besides that, both classes have a positive propensity to consume out of financial wealth. Wealth can impact aggregate demand on four ways: i) consumption out of wealth; ii) government expenditure out of wealth taxes; iii) consumption out of financial income; iv) government expenditure out of financial income taxes. In short run, the paradox of thrift and the paradox of costs hold, while a higher share of high skilled workers\' wealth has a positive impact on capacity utilization. In long run, the results suggest that a higher share of high skilled workers wealth has a negative correlation with capacity utilization. Besides that, the paradox of thrift and the paradox of costs do not hold, despite the model is demand-led. (AU) | |
| FAPESP's process: | 16/18755-6 - Effects os wealth distribuition on economic activity: theorical analysis based on the brasilian economy |
| Grantee: | Eduardo Lederman Rawet |
| Support Opportunities: | Scholarships in Brazil - Master |