Working Paper n.840 - Settembre 2020
Andrea Borsato
DEPS, USiena
Abstract
The paper fills a gap in the Secular Stagnation literature and develops an agent-based SFC model to analyse the deep relationship between income distribution and productivity through the channel of innovation. With a steady gaze on US macro-economic data since 1950, we put forth the idea that the continuous shift of income fromwages to profits may have resulted in a smaller incentive to invest in R&D activity, with the decline in productivity performances that characterizes Secular Stagnation in the USA. The paper is the first step toward the growth model that will be developed in Part II.
Keywords
Secular Stagnation, Innovation dynamics, Incomedistribution, Agentbased SFC models.
Jel Codes
E10, O31, O38, O43, P16
