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Кризис И Рост Неравенства. Оптимальный Путь Экономического Роста
[The crisis and increasing inequality. The best equilibrium growth path]

Author

Listed:
  • Yashin, Pete

Abstract

A new macroeconomic model is presented, which makes it possible to take a fresh look both at the long-term equilibrium growth process and at short-term deviations from it. The possibility of the existence of an optimal equilibrium path, which maximizes profits, is shown. Short-term deviations from the equilibrium path are described by monetized function of output, which is analytically derived here. The function has Cobb-Douglas form, but it is not neoclassical production function. Hence the strong technological progress (the key factor from the supply side) is not enough for the rapid productivity growth. A commensurate increase in relevant factor from the demand side (wage level) is required. This statement explains relatively slow labor productivity growth, which is observed in the developed countries. The consequence of the equality of aggregate demand and supply (respectively, total savings and investment) is the commensurability of profit and investment. Savings (profit) and investment are recognized as self-consistent, i.e. are both a course and consequence for each other, and these two values should not differ greatly. Noncompliance of this rule (large profit which is not reinvested) contributes to inequality and other instability factors, and may be the cause of the recent global financial crisis and subsequent stagnation.

Suggested Citation

  • Yashin, Pete, 2016. "Кризис И Рост Неравенства. Оптимальный Путь Экономического Роста [The crisis and increasing inequality. The best equilibrium growth path]," MPRA Paper 73544, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:73544
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Harrod-Domar equation; Kaldor-Pazinetti model; Pazinetti theorem; Golden rule of capital accumulation; dynamic inefficiency; path-dependent equilibrium; production function; Cobb-Douglas function; Uzawa capital intensity condition;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian

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