Article
Comparative Growth Dynamics in a Discretetime Marxian Circuit of Capital Model
Review of Radical Economics
(2014)
Abstract
In this paper, a discrete-time version of the Marxian circuit of capital model in Foley (1982, 1986a) is used to address two important theoretical issues of general interest to the heterodox economics tradition: profit-led versus wage-led growth, and the growth-reducing impact of non-production credit. First, it is demonstrated that both profit-led and wage-led growth regimes can be accommodated within the Marxian circuit of capital model. Second, it is demonstrated that, if the total flow of credit is large, the steady-state growth rate of a capitalist economy is negatively related to the share of consumption credit in total net credit.
Keywords
- circuit of capital,
- economic growth,
- consumption credit,
- Marxian political economy.
Disciplines
Publication Date
June, 2014
Publisher Statement
This article was harvested from RePec.
Citation Information
Deepankar Basu. "Comparative Growth Dynamics in a Discretetime Marxian Circuit of Capital Model" Review of Radical Economics Vol. 2014 Iss. 2 (2014) Available at: http://works.bepress.com/deepankar_dasu/4/