Profit-led or Wage-led Regimes: the Effect of
Saving Behaviours

Nicolas Canry (1)

1 CES - Centre d'économie de la Sorbonne

In this article, we modify the saving function of the Bhaduri-Marglin model and obtain a hump-shaped curve of output in function of wage-share: the nature -exhilarationist or stagnationist- of the economic regime depends on the level of income distribution. Economic policy can thus consist of shifting income distribution by redistributive policy in order to stimulate output. These conclusions remain valid in open economy, even though the exhilarationist regime is then more likely to arise. At last, we adopt a dynamic perspective by adding a wage equation to the model, which is thus characterised either by cycles or an underemployment equilibrium.

Mots clés: Cycles; Income share; Post-Keynesian theory; Saving; Unemployment

Domaines: Economies et finances

Nicolas Canry. Profit-led or Wage-led Regimes: the Effect of
Saving Behaviours. Colloque CES-MATISSE « Etat et régulation sociale. Comment penser la cohérence de l'intervention publique ? », Sep 2006, Paris, France. ⟨halshs-00149388⟩