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

Michell, Jo

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


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Jo Michell Jo.Michell@uwe.ac.uk
Professor of 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.

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/

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