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A Neo‐Kaleckian Model Of Profit Sharing, Capacity Utilization And Economic Growth

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  • Gilberto Tadeu Lima

Abstract

This paper sets forth a Neo-Kaleckian model of capacity utilization and growth with distribution featuring a profit-sharing arrangement. While a given proportion of firms compensate workers with only a base wage, the remaining proportion do so with a base wage and a share of profits. Consistent with the empirical evidence, workers hired by profit-sharing firms have a higher productivity than their counterparts in base-wage firms. While a higher profit-sharing coefficient raises capacity utilization and growth irrespective of the distribution of compensation strategies across firms, a higher frequency of profit-sharing firms does likewise only if the profit-sharing coefficient is sufficiently high.
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  • Gilberto Tadeu Lima, 2012. "A Neo‐Kaleckian Model Of Profit Sharing, Capacity Utilization And Economic Growth," Metroeconomica, Wiley Blackwell, vol. 63(1), pages 92-108, February.
    • Handle: RePEc:bla:metroe:v:63:y:2012:i:1:p:92-108
    DOI: j.1467-999X.2011.04146.x
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    1. Joan Robinson, 1962. "Essays in the Theory of Economic Growth," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-00626-7, October.
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    5. Gilberto Tadeu Lima, 2010. "Profit Sharing, Capacity Utilization and Growth in a Post-Keynesian Macromodel," Chapters, in: Mark Setterfield (ed.), Handbook of Alternative Theories of Economic Growth, chapter 17, Edward Elgar Publishing.
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    Cited by:

    1. Gilberto Tadeu Lima & Jaylson Jair Silveira, 2014. "Macroeconomic Performance under an Evolutionary Dynamics of Profit Sharing," Working Papers, Department of Economics 2014_27, University of São Paulo (FEA-USP).
    2. Hiroaki Sasaki, 2016. "Profit sharing and its effect on income distribution and output: a Kaleckian approach," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 40(2), pages 469-489.
    3. Kamel Helali & Maha Kalai & Thouraya Boujelbene, 2016. "Short-run decomposition of profit efficiency and its relationship with the Tunisian manufacturing capacity utilisation," International Journal of Applied Management Science, Inderscience Enterprises Ltd, vol. 8(1), pages 38-51.
    4. Gilberto Tadeu Lima & Jaylson Jair da Silveira, 2020. "Macroeconomic performance under evolutionary dynamics of employee profit-sharing," Review of Keynesian Economics, Edward Elgar Publishing, vol. 8(4), pages 589–615-5, October.

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    More about this item

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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