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Egalitarian Policies, Effective Demand, and Globalization: Considering Budget Constraint

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  • Taro Abe

Abstract

This paper examines the effectiveness of redistribution policies under budget constraint considering government spending for the productivity improvement as Bowles (2012) and effective demand based on Abe (2015). It shows that an asset-based redistribution policy is not always effective under effective demand and budget constraint. However, the increase of effective demand because of income distribution improves employment, labor productivity, and wage rates because of increased government spending for productivity improvement as the results of saving rate from profit income show.

Suggested Citation

  • Taro Abe, 2016. "Egalitarian Policies, Effective Demand, and Globalization: Considering Budget Constraint," Discussion papers e-15-014, Graduate School of Economics , Kyoto University.
    • Handle: RePEc:kue:epaper:e-15-014
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    File URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-15-014.pdf
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    References listed on IDEAS

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    1. Samuel Bowles, 2013. "Three's a crowd: my dinner party with Karl, Leon and Maynard," Chapters, in: Jeannette Wicks-Lim & Robert Pollin (ed.), Capitalism on Trial, chapter 1, Edward Elgar Publishing.
    2. Samuel Bowles and Robert Boyer., 1988. "Labor Discipline and Aggregate Demand: A Macroeconomic Model," Economics Working Papers 8875, University of California at Berkeley.
    3. Bowles, Samuel & Boyer, Robert, 1988. "Labor Discipline and Aggregate Demand: A Macroeconomic Model," Department of Economics, Working Paper Series qt8sb2623g, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    4. Epstein,Gerald A. & Gintis,Herbert M., 2011. "Macroeconomic Policy after the Conservative Era," Cambridge Books, Cambridge University Press, number 9780521148412, January.
    5. Bowles,Samuel, 2012. "The New Economics of Inequality and Redistribution," Cambridge Books, Cambridge University Press, number 9781107601604, January.
    6. Bowles,Samuel, 2012. "The New Economics of Inequality and Redistribution," Cambridge Books, Cambridge University Press, number 9781107014039, January.
    7. Bowles, Samuel & Boyer, Robert, 1988. "Labor Discipline and Aggregate Demand: A Macroeconomic Model," American Economic Review, American Economic Association, vol. 78(2), pages 395-400, May.
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    Cited by:

    1. Taro Abe, 2017. "Egalitarian Policies and Effective Demand: Considering Balance of Payments," Discussion papers e-17-002, Graduate School of Economics , Kyoto University.

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    More about this item

    Keywords

    Egalitarianism; Redistribution; Effective Demand; Globalization;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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