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Rentiers and Workers-Capitalists in a Non-Classical Model

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DOI: 10.4236/jmf.2013.32A002    2,802 Downloads   4,643 Views  
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ABSTRACT

We separate the rentier portion of the budget constraint of the representative agent from the income-plus-distributed profits segment. The former’s wealth consists exclusively of returns on government bonds, the latter’s wealth is wage income from working for firms plus the distributed profits of the latter. The non-neoclassical element is the non-imposition of the market-clearing assumption. The Barro-Ricardo theorem only applies to rentiers. The level of activity is shown to depend on the level of employment along with a set of parameters that capture the imperfect competition of the model.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

R. Correa, "Rentiers and Workers-Capitalists in a Non-Classical Model," Journal of Mathematical Finance, Vol. 3 No. 2A, 2013, pp. 11-14. doi: 10.4236/jmf.2013.32A002.

References

[1] E. Hein, “Finance-Dominated Capitalism and Redistribution of Income: A Kaleckian Perspective,” Working Paper No. 746, Levy Economics Institute of Bard College, New York, 2013.
[2] J.-P. Bénassy, “The Macroeconomics of Imperfect Competition and Nonclearing Markets,” The MIT Press, Cambridge, 2002.
[3] J.-P. Bénassy, “Money, Interest, and Policy,” The MIT Press, Cambridge, 2007.
[4] T. G. Moe, “Marriner S. Eccles and the 1957 TreasuryFederal Reserve Accord: Lessons for Central Bank Independence,” Working Paper No. 747, Levy Economics Institute of Bard College, New York, 2013.

  
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