In the next WHAM seminar, Professor Mark Setterfield from the New School of Social Research will give a presentation titled “Distribution and Steady-State Growth Revisited”. 

 

This presentation will investigate the two-way interaction between growth and distribution, with a particular focus on the effects of distribution on both the equilibrium and natural rates of growth, and the reconciliation of these growth rates in a steady-state configuration. A model is developed in which medium-run growth is profit-led, but steady-state growth is wage-led. This result is shown to be robust to the introduction of different sources of technical change, and the demand- and supply-side effects of human capacities accumulation. Finally, the model is used to explain the coincidence of wage stagnation and secular stagnation in the US economy over the past 40 years.