Credit Money and Kaldor's 'Institutional' Theory of Income Distribution

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This paper combines two major contributions by Kaldor: the view that the supply of money, ensuing mainly from bank credit, is endogenous, and the framework which assigns a crucial role to the saving and investment behaviour of corporations in determining the general rate of profit (the neo-Pasinetti theorem). Bank loans are introduced as another means of financing investment by firms, in addition to retained profits and the new issuance of shares. The proposed model provides a convenient framework in which two different approaches in the money-endogeneity view are classified. Kaldor's neo-Pasinetti theorem is shown to hold for only one of these approaches and is then extended to include the influence of banks.

Original languageEnglish
Pages (from-to)79-99
Number of pages21
JournalReview of Political Economy
Volume16
Issue number1
DOIs
Publication statusPublished - 2004 Jan 1

Fingerprint

income distribution
credit
bank
money
profit
investment behavior
saving behavior
loan
corporation
supply
firm
Kaldor
Distribution of income
Credit
Institutional theory
Bank loans
Investment behavior
Saving behavior
Rate of profit
Endogeneity

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

Credit Money and Kaldor's 'Institutional' Theory of Income Distribution. / Park, Man Seop.

In: Review of Political Economy, Vol. 16, No. 1, 01.01.2004, p. 79-99.

Research output: Contribution to journalArticle

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