Skip to main content

Research Repository

See what's under the surface

A Steindlian account of the distribution of corporate profits and leverage: A stock-flow consistent macroeconomic model with agent-based microfoundations

Michell, Jo

Authors

Jo Michell Jo.Michell@uwe.ac.uk
Associate Professor in Economics



Abstract

Post Keynesian economics has largely forgotten Steindl's insight that monopolisation of the corporate sector redistributes profits to those firms least likely to invest them productively. Agent-based methods can be used to incorporate Steindl's insights into a simple stock-flow consistent model of monetary circuit. This model illustrates the 'maldistribution of profits' and 'enforced indebtedness' of heterogeneous firms alongside the tendency towards stagnation that occurs with rising monopolisation. The model also demostrates Minsky's assertion that firms' leverage rises over the business cycle can be reconciled with Kalecki's macroeconomic identities showing that profits are 'financed' by the investment expenditures of firms.

Publication Date Dec 1, 2014
Peer Reviewed Peer Reviewed
Institution Citation Michell, J. (2014). A Steindlian account of the distribution of corporate profits and leverage: A stock-flow consistent macroeconomic model with agent-based microfoundations
Keywords stock-flow consistent, heterogeneous agents, Post-Keynesian
Publisher URL http://www.postkeynesian.net/downloads/wpaper/PKWP1412.pdf
Related Public URLs http://www.postkeynesian.net/

Files






You might also like



Downloadable Citations