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| Content Provider | Springer Nature Link |
|---|---|
| Author | Stockhammer, Engelbert Ederer, Stefan |
| Copyright Year | 2008 |
| Abstract | This paper aims at empirically estimating the demand effects of changes in functional income distribution for Austria. Based on a Post-Kaleckian macro model, this paper estimates the effects of a change in the wage share on the main demand aggregates. The results for the behavioral functions for consumption, investment, prices, exports and imports are compared with the specifications of the WIFO macro model and the IHS macro model. A reduction in the wage share has a restrictive effect on domestic demand as consumption decreases more strongly than investment increases. Because of the strong effects on net exports the overall effects of a decrease in the wage share are expansionary. However the latter effect operates only as far as the fall in the wage share increases competitiveness. As wage shares were also falling in Austria’s main trading partners, the effect seems to have been neutralized. |
| Starting Page | 481 |
| Ending Page | 502 |
| Page Count | 22 |
| File Format | |
| ISSN | 03408744 |
| Journal | Empirica |
| Volume Number | 35 |
| Issue Number | 5 |
| e-ISSN | 15736911 |
| Language | English |
| Publisher | Springer US |
| Publisher Date | 2008-06-26 |
| Publisher Place | Boston |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | Distribution Demand Investment Consumption Foreign trade Macroeconomics Keynesian economics Public Finance & Economics Industrial Organization Econometrics Macroeconomics/Monetary Economics International Economics European Integration |
| Content Type | Text |
| Resource Type | Article |
| Subject | Geography, Planning and Development Development Economics and Econometrics |
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