Jo Michell Jo.Michell@uwe.ac.uk
Professor of Economics
A Steindlian account of the distribution of corporate profits and leverage: A stock-flow consistent macroeconomic model with agent-based microfoundations
Michell, Jo
Authors
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.
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
Publication Date | Dec 1, 2014 |
---|---|
Publicly Available Date | Jun 6, 2019 |
Peer Reviewed | Peer Reviewed |
Keywords | stock-flow consistent, heterogeneous agents, Post-Keynesian |
Public URL | https://uwe-repository.worktribe.com/output/807222 |
Publisher URL | http://www.postkeynesian.net/downloads/wpaper/PKWP1412.pdf |
Related Public URLs | http://www.postkeynesian.net/ |
Files
PKWP1412.pdf
(1.5 Mb)
PDF
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