Stockhammer, E, Rabinovich, J orcid.org/0000-0002-9175-0848 and Reddy, N (2021) Distribution, wealth and demand regimes in historical perspective: the USA, the UK, France and Germany, 1855–2010. Review of Keynesian Economics, 9 (3). pp. 337-367. ISSN 2049-5323
Abstract
Most empirical macroeconomic research is limited to the period since World War II. This paper analyses the effects of changes in income distribution and in private wealth on consumption and investment covering a period from as early as 1855 through to 2010 for the UK, France, Germany and the USA, based on the data set of Piketty and Zucman (2014). We contribute to the study of wealth effects, of financialization, and of the nature of demand regimes. We find that overall domestic demand has been wage-led in the USA, the UK and Germany. Total investment responds positively to higher wage shares, which is driven by residential investment. For corporate investment alone, we find a negative relation. Wealth effects are found to be positive and significant for consumption in the USA and the UK, but weaker in France and Germany. Investment is negatively affected by private wealth in the USA and the UK, but positively in France and Germany.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © Stockhammer, Rabinovich and Reddy, 2021. The definitive, peer reviewed and edited version of this article is published in Review of Keynesian Economics, 9 (3), 337–367, 2021. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | financialization, wealth, income distribution, economic growth |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 04 Aug 2021 08:52 |
Last Modified: | 01 Jan 2023 01:13 |
Status: | Published |
Publisher: | Edward Elgar Publishing |
Identification Number: | 10.4337/roke.2021.03.03 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:176512 |
Commentary/Response Threads
- Stockhammer, E, Rabinovich, J and Reddy, N Distribution, wealth and demand regimes in historical perspective: the USA, the UK, France and Germany, 1855–2010. (deposited 04 Aug 2021 08:52) [Currently Displayed]