Income Distribution, Economic Growth and Unemployment

Edited by João Ricardo Faria, Professor, Department of Economics, College of Business, Florida Atlantic University, USA, Jorge Thompson Araujo, International Consultant, The World Bank and Senior Researcher, Department of Economics, University of Brasilia, Brazil, João Gabriel de Araujo Oliveira, Associate Professor, Department of Business and Economics, Ibmec-DF; Consultant, The World Bank; and Visiting Professor, Department of Economics, State University of Londrina, Brazil

‘This volume celebrates the unparalleled efforts by Joanilio Teixeira of the University of Brasilia to sustain and develop insights first advanced in the post-Keynesian Cambridge UK contributions of Pasinetti, Kalecki, Robinson, Kaldor, and Harcourt, among many others. Teixeira’s work shows that clear and concise models of income and wealth distribution building on that tradition can help illuminate contemporary global economic dynamics. The papers collected here advance those insights and challenge all macroeconomists to reassess whether their core assumptions describe the world in which we live.’

• ContentsIntroduction to Income Distribution, Economic Growth andUnemployment 1João Ricardo Faria, Jorge Thompson Araujo and João Gabriel deAraujo OliveiraPART I HISTORY OF ECONOMIC THOUGHT: THESIGNIFICANCE OF THE CAMBRIDGE SCHOOL OFECONOMICS1 Joanilio Rodolpho Teixeira: the founder and senior scholarof the Anglo-Italian-Brazilian school of post-Keynesianeconomics 9Mauro Leo Baranzini and Amalia Mirante2 Post-Keynesian and post-Kaleckian growth and distribution:challenges and comparative analysis 60Joanilio Rodolpho Teixeira3 An examination of Joan Robinson’s simple model: the Kaldor-Robinson’s Cambridge Theorem 79João Gabriel de Araujo Oliveira and Daniel Soares FogoPART II NEW THEORETICAL CONTRIBUTIONS4 Entrepreneurship and the Cambridge result: Schumpetermeets Pasinetti 92João Ricardo Faria5 Profit rate, Cambridge equation and stability in Kaldor-Pasinetti models incorporating human capital and endogenoustechnological progress in the neoclassical production function 100Renato Nozaki Sugahara and Joanna Georgios Alexopoulos6 A theoretical note on the supermultiplier approach in a labor-constrained economy 127Jorge Thompson Araujo and João Gabriel de Araujo Oliveira7 The impact of the informal sector on growth in developingeconomies: insights from a Kaleckian framework 138Henrique Bottura Paiva8 Stability and Hopf-Bifurcation of a growth model consideringautonomous consumption and employment effects 156João Gabriel de Araujo Oliveira, Beatriz Estulano Vieiraand Maurilio Boaventura9 An analytical economic dynamic model consideringunemployment and incorporating the SIR approach 187João Gabriel de Araujo Oliveira, Geraldo Sandoval Góesand Joanilio Rodolpho Teixeira10 Prestige clubs 216Richard C. Cornes and Emilson C. D. SilvaPART III EMPIRICAL APPLICATIONS11 Wage share developments: shedding light on Kalecki’s theoryof functional income distribution 240Luiz de Mello and Cyrille Schwellnus12 A vertically integrated approach to structural decomposition:an analysis of the Brazilian economy from 2000 to 2018 255Ricardo Azevedo Araujo, Theo Santini and Rafael de Acypreste13 Do network and herd effects depend on previous workexperience in the US? A propensity score analysis usingMexican migration data 283André Rossi de Oliveira14 Oil price shocks on economic growth and the stock market:Evidence from Brazil and the US 300Andre Varella Mollick and Andre Coelho Vianna