Economics Department Working Paper Series
Working Paper Number
2012-02
Publication Date
2012
Abstract
Building on Marx’s insights in Chapter 25, Volume I of Capital, an augmented version of the cyclical profit squeeze (CPS) theory offers a plausible explanation of macroeconomic fluctuations under capitalism. The pattern of dynamic interactions that emerges from a 3-variable (profit share, unemployment rate and nonresidential fixed investment) vector autoregression estimated with quarterly data for the postwar U.S. economy is consistent with the CPS theory for the regulated (1949Q1–1975Q1) as well as for the neoliberal periods (starting in 1980 or in 1985). Hence, the CPS mechanism seems to be in operation even under neoliberalism.
DOI
https://doi.org/10.7275/3317896
Recommended Citation
Basu, Deepankar; Chen, Ying; and Oh, Jong-seok, "Class Struggle and Economic Flactuations: VAR Analysis of the post-War U.S. Economy" (2012). Economics Department Working Paper Series. 142.
https://doi.org/10.7275/3317896