Quotation Rezai, Armon. 2015. Demand and distribution in integrated economies. Cambridge Journal of Economics 39 (5), 1399-1414.


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Abstract

Aggregate demand is influenced by the functional distribution of income of an economy and that of its trading partner. The relationship between income distribution and output is analysed 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 towards wage earners is also more likely to be expansionary.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Cambridge Journal of Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new VW-D, WH-B
Language English
Title Demand and distribution in integrated economies
Volume 39
Number 5
Year 2015
Page from 1399
Page to 1414
Reviewed? Y
URL http://cje.oxfordjournals.org/content/39/5/1399.full
DOI http://dx.doi.org/10.1093/cje/beu060

Associations

People
Rezai, Armon (Details)
Organization
Institute for Ecological Economics IN (Details)
Economics of Inequality FI (Details)
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