Price and nominal wage Phillips curves and the dynamics of distribution in Japan

Sonoda, Ryunosuke

doi:10.1080/02692171.2016.1221387

Cited by 5 publications

(7 citation statements)

References 10 publications

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“…Similarly, if 𝜙 2 < 0 and Ω < 0 , that is, if the demand regime is a profit-led demand regime and the distributive regime is a counter-cyclical wage share regime, it is difficult for the stability condition of a 2 > 0 to be satisfied for the same reason. Sonoda (2017) shows that the Japanese economy exhibits this combination. We confirm this (11)…”

Section: Stability Of Dynamicsmentioning

confidence: 93%

“…Few studies have attempted similar estimations in Japan. Sonoda (2017) is one of the few studies that estimate both demand and distributive regimes using data on the Japanese economy. Sonoda's (2017) estimated results show that the Japanese economy exhibits a profit-led demand regime and a counter-cyclical wage share regime.…”

Section: Introductionmentioning

confidence: 99%

“…Sonoda (2017) is one of the few studies that estimate both demand and distributive regimes using data on the Japanese economy. Sonoda's (2017) estimated results show that the Japanese economy exhibits a profit-led demand regime and a counter-cyclical wage share regime. As noted below, these results suggest that the Japanese economy exhibited instability and that some factors stabilized the dynamics.…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, in this study, we add the government sector to Sonoda's (2017) model and investigate the effect of fiscal policies on the stability of the dynamics of effective demand and income distribution in Japan. We obtained two main findings.…”

Section: Introductionmentioning

confidence: 99%

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The stabilizing effect of fiscal policies on the dynamics of effective demand and income distribution in Japan

Sonoda

2021

Evolut Inst Econ Rev

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In this study, we build a Kaleckian model incorporating fiscal policies and investigate the possibility that fiscal policies have had a stabilizing influence on the dynamics of effective demand and income distribution in Japan. In a Kaleckian model with a fluctuating income distribution rate, the combination of the demand and distributive regimes may destabilize the system, and it is important to clarify the policy approach to stabilize it. For this purpose, we specify dynamic system consisting of three variables, the rate of capacity utilization, wage share, and the level of government expenditure. Then we estimate the parameters in this model using data relating to the Japanese economy from 1977 to 2007. As a result, we obtained the following findings: first, even if the combination of demand and distributive regimes has the potential to destabilize the system, the system may stabilize if counter-cyclical fiscal policy has a sufficient effect on the effective demand and if the government does not take an excessive budgetary austerity stance. Second, in Japan, the dynamics of effective demand and income distribution may have been unstable, and fiscal policy has not contributed to systemic stability. Third, the main reason Japan's fiscal policy did not have a stabilizing effect was not the stance of the government's fiscal policy, but rather the insufficient effect of the policy on effective demand. These results suggest the existence of different factors that stabilized the Japanese economy.

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Section: Stability Of Dynamicsmentioning

confidence: 93%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The stabilizing effect of fiscal policies on the dynamics of effective demand and income distribution in Japan

Sonoda

2021

Evolut Inst Econ Rev

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“…We set the parameters and the initial values of u and m as follows. Then, we increase the sharing parameter from 10 Many empirical studies that examine the demand regime of Japan based on Kaleckian models show that the Japanese economy exhibits the profit-led demand regime (Azetsu, Koba, and Nakatani, 2010;Sonoda, 2007Sonoda, , 2013Nishi, 2010). 11 The effects of an increase in the sharing parameter on the relative employment R NR L L / are summarized in Table 6.…”

Section: Case 1: Profit-led Demand and Weak Productivity Enhancing Efmentioning

confidence: 99%

Profit sharing and its effect on income distribution and output: a Kaleckian approach

Sasaki

2015

CAMECO

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This paper investigates the effect of profit sharing on the economy by using a Kaleckian model. Unlike exiting studies, we endogenize the profit share. Our analysis shows that if the size of the productivity-enhancing effect of profit sharing is small, profit sharing decreases the equilibrium rate of capacity utilization whereas if the size is large, profit sharing increases the equilibrium rate of capacity utilization.

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Debt burden, investment, and profit-sharing

Ninomiya

2023

Evolut Inst Econ Rev

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Price and nominal wage Phillips curves and the dynamics of distribution in Japan

Cited by 5 publications

References 10 publications

The stabilizing effect of fiscal policies on the dynamics of effective demand and income distribution in Japan

The stabilizing effect of fiscal policies on the dynamics of effective demand and income distribution in Japan

Profit sharing and its effect on income distribution and output: a Kaleckian approach

Debt burden, investment, and profit-sharing

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