Capital accumulation, income distribution, effective demand and employment

Political economy approaches to macroeconomics highlight the central role of social conflicts and the complex social determinants of capital investment decisions in the growth process. The analysis builds on the work of Marx, Keynes, and Kalecki and tries to apply these theories to contemporary issues: What are the effects of changes in income distribution on aggregate demand? What are the reasons behind long-term trends in unemployment? And what are appropriate policies to reduce it?

A selection of papers indicative of our ongoing work in the area:

  • Brown, V and Mohun, S (2011), The UK Interwar Rate of Profit 1920-38, Cambridge Journal of Economics, 35(6): 1035-59 (doi: 10.1093/cje/ber013)
  • Stockhammer, E, Stehrer, R (2011), Goodwin or Kalecki in demand? Functional income distribution and aggregate demand in the short run, Review of Radical Political Economics forthcoming
  • Mohun, S (2009), Aggregate Capital Productivity in the U.S. Economy 1964-2001, Cambridge Journal of Economics, 33(5): 1023-46
  • Stockhammer, Engelbert, Onaran, Ozlem and Ederer, Stefan (2009), Functional income distribution and aggregate demand in the Euro area, Cambridge Journal of Economics, 33(1), pp. 139-159. ISSN (print) 0309-166X
  • Wells, Julian (2009), Size effects in financial ratios: a PPE perspective, second conference on Developing Quantitative Marxism, University of Bristol
  • Stockhammer, Engelbert (2008), Is the NAIRU a Monetarist, New Keynesian, Post Keynesian or Marxist theory? Metroeconomica 59 (4), 479-510
  • Wells, Julian (2007), The rate of profit as a random variable, PhD thesis, The Open University
Photograph of a torn Euro banknote