Lectures on Growth

Post-Keynesian/Neo-Kaleckian Growth Models: The Impact of Distribution on Growth

1-2 June, 2015

Lecturer: Cem OyvatUniversity of Greenwich

E-mail: c.oyvat@greenwich.ac.uk

Room: IB 201

Boğaziçi University, Istanbul

The aim of this 10-hours long mini course is to provide an introduction to Post-Keynesian/Neo-Kaleckian growth models that examine the relationship between economic growth and income distribution. The first section of the course will introduce students with functional income distribution, profit-led and wage-led growth and the basics of Marglin and Bhaduri, and Dutt models. The second section will cover different applications of Post-Keynesian/Neo-Kaleckian growth models (open economy, public investments, gender equality). Next, we will discuss the criticisms of Post-Keynesian/Kaleckian growth models. We will examine neo-Marxian Goodwin Model that considers the endogeneity between distribution and growth. The last section of the course will cover the empirical literature on wage-led and profit-led growth.

The course will meet at IB 211 on Monday June 1st from 10 am to 3pm (with a break from 12pm to 1pm) and Tuesday June 2nd from 10 am to 12:30 pm.

Course outline 

1) Post-Keynesian/Neo-Kaleckian: Marglin and Bhaduri, Dutt
2) Extensions of wage-led and profit-led models (open economy, public investments, gender equality)
3) Criticisms of Post-Keynesian/Kaleckian growth models and the Goodwin model
4) Empirical applications of wage-led and profit-led growth 
The course will meet at IB 211 on Monday June 1st from 10 am to 3pm (with a break from 12pm to 1pm) and Tuesday June 2nd from 10 am to 12:30 pm.

Core Readings 

  • Bhaduri, A., & Marglin, S. (1990). Unemployment and the real wage: the economic basis for contesting political ideologies. Cambridge Journal of Economics, 375-393.
  • Goodwin, R. M. (1967) "A Growth Cycle", in C.H. Feinstein (ed.) Socialism, Capitalism and Economic Growth. Cambridge: Cambridge University Press
  • Hein, E., & Vogel, L. (2008). Distribution and growth reconsidered: empirical results for six OECD countries. Cambridge Journal of Economics, 32(3), 479-511.
  • Onaran, Ö., & Galanis, G. (2014). Income distribution and growth: a global model. Environment and Planning A, 46(10), 2489-2513.

Optional Readings 

  • Blecker, R. (2010). “Open economy models of distribution and growth” in E. Hein and E Stockhammer (eds.), A Modern Guide to Keynesian Macroeconomics and Economic Policies, Cheltenham, UK: Edward Elgar  
  • Dutt, A. K. (1984). Stagnation, income distribution and monopoly power. Cambridge Journal of Economics, 25-40.
  • Palley, T. I. (2015). The middle class in macroeconomics and growth theory: a three-class neo-Kaleckian–Goodwin model. Cambridge Journal of Economics, 39(1), 221-243.
  • Seguino, S. (2012). Macroeconomics, Human Development, and Distribution. Journal of Human Development and Capabilities, 13(1), 59-81.
  • Skott, P. (2012). Theoretical and empirical shortcomings of the Kaleckian investment function. Metroeconomica, 63(1), 109-138.
  • Stockhammer, E., Hein, E., & Grafl, L. (2011). Globalization and the effects of changes in functional income distribution on aggregate demand in Germany. International Review of Applied Economics, 25(1), 1-23.
  • Stockhammer, E., Onaran, Ö., & Ederer, S. (2009). Functional income distribution and aggregate demand in the Euro area. Cambridge Journal of Economics, 33(1), 139-159.