Article
Class Struggle and Economic Fluctuations: VAR Analysis of the post-War U.S. Economy
International Review of Applied Economics
(2013)
Abstract
Building on Marx’s insights in Chapter 25, Volume I of Capital, an augmented version of the cyclical profit squeeze (CPS) theory oers a plausible explanation of macroeconomic fluctuations under capitalism. The pattern of dynamic interactions that emerges from a 3-variable (profit share, unemployment rate and nonresidential fixed investment) vector autoregression estimated with quarterly data for the postwar U.S. economy is consistent with the CPS theory for the regulated (1949Q1–1975Q1) as well as for the neoliberal periods (starting in 1980 or in 1985). Hence, the CPS mechanism seems to be in operation even under neoliberalism.
Keywords
- cyclical profit squeeze,
- vector autoregression
Disciplines
Publication Date
September, 2013
Citation Information
Deepankar Basu, Ying Chen and Jong-seok Oh. "Class Struggle and Economic Fluctuations: VAR Analysis of the post-War U.S. Economy" International Review of Applied Economics Vol. 27 Iss. 5 (2013) Available at: http://works.bepress.com/deepankar_dasu/3/