DT 16 - 24 Rentas de la tierra y regímenes de crecimiento en economías periféricas. Una extensión del modelo postkaleckiano de distribución y crecimiento
- Year: 2024
- ISBN/ISSN: 1688-5090
- Research group: Economic history
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This paper presents an extension of the distribution and growth model developed by Hein and Tarassow (2010), incorporating land rents as a relevant component of the functional income distribution. The extension is based on the post-Kaleckian model for open economies with endogenous technical progress and positive saving out of all types of income, integrating land rents alongside wages and profits into the functional distribution. Land rents are considered income derived from the monopolistic control of a non-reproducible capital: land. In this context, the mark-up rate on average variable cost is implicitly higher in the agricultural sector, whose surplus includes both profits and land rents, than in the rest of the economy. By considering the share of wages, profits, and land rents within the functional income distribution, the model allows for the analysis of how changes in the distribution among these three components affect aggregate demand, productivity growth, and ultimately, economic growth. Incorporating land rents allows the model to characterise and analyse multiple regimes and/or combinations of demand, productivity, and growth regimes. Particularly, the extended model opens up the possibility that wage-led or profit-led regimes may not be ‘pure’ but could also incorporate elements of a land rent-led regime. This is especially relevant for peripheral economies, mainly for long-term analyses or during historical periods in which land rents may have had a larger share of income.
Keywords: growth regimes; functional income distribution; land rents.