Description
Book SynopsisIncome Distribution in a Corporate Economy offers a skilful examination of the influences of financial markets and imperfect competition on the distributive process. Unlike much of the earlier literature, it concentrates upon the short-run, making it suitable for empirical appraisal.
After a thorough review of the theoretical and empirical literature of the past 30 years, Russell Rimmer uses a series of models to synthesize results from post Keynesian macroeconomics, investment theory and industrial economics. The final chapters contain an analysis of the short-run effects of changes in pricing strategies and increases in industrial concentration on income shares accruing to households and corporations.
By presenting in one place the neo-classical and post Keynesian approaches, the book will serve both as a text and a foundation for future work on distribution. Students new to income distribution will be able to read the text as an introduction to the neoclassical and post Keynesian approaches. A novel contribution is the gathering together of early extensions of post Keynesian theory to the short run, including accounts of attempts to synthesise the major theoretical strands.
Trade Review'Income Distribution in a Corporate Economy
not only shows a very thorough knowledge of the relevant literature and considerable technical virtuosity and synthesising capabilities, it is also a substantial and original contribution to the literature.' -- G.C. Harcourt, University of New South Wales, Australia
'Rimmer's book provides both a useful clarification of the debate over the Cambridge-style, post Keynesian approach to distribution and a useful demonstration of the possible avenues available in bringing that approach into contact with the short run and with analysis at the industry level.’ -- Graham White, The Economic Record
'Rimmer's work is undoubtedly stimulating. . .' -- Terence Hutchinson, Review of Political Economy
'This is one of the best modern books written on the functional distribution of income.' -- A.P. Thirlwall, The Economic Journal
Table of ContentsPart 1 Income distribution in a perfectly competitive economy: the neoclassical microeconomy; does marginal productivity exhaust the product?; technology and substitution; the post-Keynesian critique of neoclassical distribution; capital deepening, the importance of capitalists and reswitching. Part 2 Some post-Keynesian approaches to distribution: the basic Kaldorian model; savings haviour and income shares; the neo-Pasinetti theorem; Boulding's theory of distribution in a neo-Pasinetti framework; Kaldor's representative firm and a two-sector extension. Part 3 Short-run Kaldorian theories of distribution: Sen's marginal productivity theory; Riach's marginal productivity model; Harcourt's price rule; Goodwin's aggregate demand analysis. Part 4 Financial markets, corporate decision-making and distribution: speculation, enterprise and investment; mark-up pricing; an extension of the neo-Pasinetti model. Part 5 Investment, the mark-up and Tobin's q: estimating the relationship between investmetn and Tobin's q; the price mechanism; competing theories of price; industry structure and the profit margin; what determines the value of q?. Part 6 Industry structure, conduct and a Keynesian theory of distribution: determination of the mark-up; the monopoly rents of firms and Tobin's q; a short-run model of financial markets, industry structure and corporate behaviour; increased industrial concentration and distribution.
