Rezai, Armon (2016) Demand and Distribution in Integrated Economies. Ecological Economic Papers, 10. WU Vienna University of Economics and Business, Vienna.
![]()
|
PDF
EcolEcon_WorkingPaper_2016_10.pdf Download (1MB) |
Abstract
Aggregate demand is influenced by the functional income distribution of an economy and that of its trading partners. This relationship between income distribution and output is analyzed in a short-run two-country Neo-Kaleckian model. The effects of devaluation and redistribution are discussed in detail. Trade and redistribution within one country interact and output increases or decreases with changes in either depending on the specific distributional and exchange rate movements. The Marshall-Lerner condition is shown to be equivalent to the assumption of expansionary devaluation. If devaluation increases output, national redistribution policy toward wage earners is also more likely to be expansionary. (author's abstract)
Item Type: | Paper |
---|---|
Keywords: | Open Economy / Adding-Up Constraints / International Macroeconomics / Devaluation / Growth / Distribution |
Classification Codes: | JEL E12, F15, F32 F41 |
Divisions: | Departments > Sozioökonomie > Ecological Economics |
Version of the Document: | Published |
Variance from Published Version: | Minor |
Depositing User: | Karin Lagger |
Date Deposited: | 27 Jan 2016 13:27 |
Last Modified: | 22 Oct 2019 00:41 |
Related URLs: | |
URI: | https://epub.wu.ac.at/id/eprint/4814 |
Actions
![]() |
View Item |
Downloads
Downloads per month over past year