IDEAS home Printed from https://ideas.repec.org/a/sae/reorpe/v48y2016i4p577-587.html
   My bibliography  Save this article

Kalecki and the Determinants of the Profit Rate in the United States

Author

Listed:
  • Erdogan Bakir
  • Al Campbell

Abstract

The Weisskopfian approach has dominated empirical studies of the US rate of profit for the last thirty-five years. Forty-five years earlier, Michal Kalecki developed a different frame suitable for empirical profit rate studies, which had the potential to give different, but complementary, insight into the profit rate analysis based on the Weisskopfian approach. This paper first presents a development of the Kaleckian frame. It then applies this frame to the US economy and presents some preliminary empirical results.

Suggested Citation

  • Erdogan Bakir & Al Campbell, 2016. "Kalecki and the Determinants of the Profit Rate in the United States," Review of Radical Political Economics, Union for Radical Political Economics, vol. 48(4), pages 577-587, December.
    • Handle: RePEc:sae:reorpe:v:48:y:2016:i:4:p:577-587
    DOI: 10.1177/0486613416665835
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0486613416665835
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0486613416665835?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Weisskopf, Thomas E, 1979. "Marxian Crisis Theory and the Rate of Profit in the Postwar U.S. Economy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 3(4), pages 341-378, December.
    2. Deepankar Basu & Ramaa Vasudevan, 2013. "Technology, distribution and the rate of profit in the US economy: understanding the current crisis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 37(1), pages 57-89.
    3. Sergio Cámara Izquierdo, 2014. "The role of long and short-term dynamics of the US rate of profit in the current crisis," International Journal of Management Concepts and Philosophy, Inderscience Enterprises Ltd, vol. 8(1), pages 1-22.
    4. Bhaduri, Amit & Robinson, Joan, 1980. "Accumulation and Exploitation: An Analysis in the Tradition of Marx, Sraffa and Kalecki," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 4(2), pages 103-115, June.
    5. S Jay Levy, 2001. "Profits: The Views of Jerome Levy and Michal Kalecki," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 24(1), pages 17-30, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Di Bucchianico, Stefano, 2019. "The Impact of Financialization on the Rate of Profit: A Discussion," Centro Sraffa Working Papers CSWP36, Centro di Ricerche e Documentazione "Piero Sraffa".
    2. Trofimov, Ivan D., 2022. "Determinants of the profit rates in the OECD economies: A panel data analysis of the Kalecki's profit equation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 380-397.
    3. Basu, Deepankar, 2015. "A Selective Review of Recent Quantitative Empirical Research in Marxist Political Economy," UMASS Amherst Economics Working Papers 2015-05, University of Massachusetts Amherst, Department of Economics.
    4. Leila Davis & Joao de Souza, 2022. "Stylized facts on the evolution of profit rates in the US: Evidence from firm-level data," Working Papers 2022-01, University of Massachusetts Boston, Economics Department.
    5. Silvia Domeneghetti & Andrea Vaona, 2015. "Regional aspects of aggregate profitability dynamics in Italy," Working Papers 04/2015, University of Verona, Department of Economics.
    6. Roberto Veneziani & Luca Zamparelli & Deepankar Basu, 2017. "Quantitative Empirical Research In Marxist Political Economy: A Selective Review," Journal of Economic Surveys, Wiley Blackwell, vol. 31(5), pages 1359-1386, December.
    7. Basu, Deepankar & Das, Debarshi, 2015. "Profitability in India’s Organized Manufacturing Sector: The Role of Technology, Distribution, and Demand," UMASS Amherst Economics Working Papers 2015-04, University of Massachusetts Amherst, Department of Economics.
    8. David M. Kotz, 2015. "Capitalism and Forms of Capitalism," Review of Radical Political Economics, Union for Radical Political Economics, vol. 47(4), pages 541-549, December.
    9. Satya Prasad Padhi, 2021. "Employment dynamics, increasing returns and Marx's falling rate of profit," PSL Quarterly Review, Economia civile, vol. 74(298), pages 219-245.
    10. Basu, Deepankar & Das, Debarshi, 2015. "Profitability and Investment: Evidence from India's Organized Manufacturing Sector," UMASS Amherst Economics Working Papers 2015-14, University of Massachusetts Amherst, Department of Economics.
    11. Fred Moseley, 1990. "The Decline of the Rate of Profit in the Postwar U.S. Economy: An Alternative Marxian Explanation," Review of Radical Political Economics, Union for Radical Political Economics, vol. 22(2-3), pages 17-37, June.
    12. Rinaldo Evangelista, 2018. "Technology and Economic Development: The Schumpeterian Legacy," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(1), pages 136-153, March.
    13. Rudy Fichtenbaum, 1988. "'Business Cycles,' Turnover and the Rate of Profit: An Empirical Test of Marxian Crisis Theory," Eastern Economic Journal, Eastern Economic Association, vol. 14(3), pages 221-228, Jul-Sep.
    14. Bengtsson, Erik & Waldenström, Daniel, 2018. "Capital Shares and Income Inequality: Evidence from the Long Run," The Journal of Economic History, Cambridge University Press, vol. 78(3), pages 712-743, September.
    15. Hager, Sandy Brian, 2013. "Public Debt, Ownership and Power: The Political Economy of Distribution and Redistribution," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 157991, January.
    16. Alexiou, Constantinos, 2022. "Evaluating the falling rate of profit in the context of the UK economy," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 84-94.
    17. Alexei Izyumov & John Vahaly, 2015. "Income Shares Revisited," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(1), pages 179-188, March.
    18. Santiago José Gahn & Alejandro González, 2022. "On the empirical content of the convergence debate: Cross‐country evidence on growth and capacity utilisation," Metroeconomica, Wiley Blackwell, vol. 73(3), pages 825-855, July.
    19. Skouras, Thanos, 2013. "Profits and employment," MPRA Paper 50597, University Library of Munich, Germany.
    20. Erdogan Bakir, 2015. "Capital Accumulation, Profitability, and Crisis," Review of Radical Political Economics, Union for Radical Political Economics, vol. 47(3), pages 389-411, September.

    More about this item

    Keywords

    US profit rate; Kalecki; business cycles; dissaving;
    All these keywords.

    JEL classification:

    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:reorpe:v:48:y:2016:i:4:p:577-587. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.urpe.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.