{"title":"Equity issuance, share buy-back and growth in a Kaldor-Kalecki model","authors":"Sébastien Charles","doi":"10.1108/jes-07-2023-0353","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p>The aim of this article is to assess the macroeconomic consequences of some specific aspects of financialization (i.e. share buy-back) using a hybrid post-Keynesian model of growth and distribution based on Kaldorian and Kaleckian characteristics.</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p>The study follows a post-Keynesian approach and deals with financialization issues by implementing several numerical simulations.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p>The numerical simulations reveal the negative real impacts of massive share repurchases on the rate of accumulation because they immediately siphon off revenues directly intended for investment projects. Moreover, the negative effect of share buy-backs is reinforced especially when firms' investment decisions are more sensitive to a variation in retained earnings. Next, this macro-model also reproduces several well-known figures of the Kaleckian tradition and the paradox of costs.</p><!--/ Abstract__block -->\n<h3>Research limitations/implications</h3>\n<p>The present article can be considered as a starting point for further theoretical extensions and requires empirical validation.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p>The Kaldor-Kalecki macro-model could be useful for policymakers who are interested in containing some of the negative excesses of financialization.</p><!--/ Abstract__block -->","PeriodicalId":47604,"journal":{"name":"JOURNAL OF ECONOMIC STUDIES","volume":null,"pages":null},"PeriodicalIF":1.9000,"publicationDate":"2024-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"JOURNAL OF ECONOMIC STUDIES","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/jes-07-2023-0353","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
The aim of this article is to assess the macroeconomic consequences of some specific aspects of financialization (i.e. share buy-back) using a hybrid post-Keynesian model of growth and distribution based on Kaldorian and Kaleckian characteristics.
Design/methodology/approach
The study follows a post-Keynesian approach and deals with financialization issues by implementing several numerical simulations.
Findings
The numerical simulations reveal the negative real impacts of massive share repurchases on the rate of accumulation because they immediately siphon off revenues directly intended for investment projects. Moreover, the negative effect of share buy-backs is reinforced especially when firms' investment decisions are more sensitive to a variation in retained earnings. Next, this macro-model also reproduces several well-known figures of the Kaleckian tradition and the paradox of costs.
Research limitations/implications
The present article can be considered as a starting point for further theoretical extensions and requires empirical validation.
Originality/value
The Kaldor-Kalecki macro-model could be useful for policymakers who are interested in containing some of the negative excesses of financialization.
期刊介绍：
The Journal of Economic Studies publishes high quality research findings and commentary on international developments in economics. The journal maintains a sound balance between economic theory and application at both the micro and the macro levels. Articles on economic issues between individual nations, emerging and evolving trading blocs are particularly welcomed. Contributors are encouraged to spell out the practical implications of their work for economists in government and industry
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