Publications

7 publications found, searching for 'Olivier Giovannoni '

• Working Paper No. 807 June 04, 2014

  Income Distribution Macroeconomics

  Olivier Giovannoni
  Abstract

  Recent research stresses the macroeconomic dimension of income distribution, but no theory has yet emerged. In this note, we introduce factor shares into popular growth models to gain insights into the macroeconomic effects of income distribution. The cost of modifying existing models is low compared to the benefits. We find, analytically, that (1) the multiplier […]

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• Working Paper No. 805 May 30, 2014

  What Do We Know About the Labor Share and the Profit Share? Part III

  Olivier Giovannoni
  Abstract

  Economic theory frequently assumes constant factor shares and often treats the topic as secondary. We will show that this is a mistake by deriving the first high-frequency measure of the US labor share for the whole economy. We find that the labor share has held remarkably steady indeed, but that the quasi-stability masks a sizable […]

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• Working Paper No. 804 May 21, 2014

  What Do We Know About the Labor Share and the Profit Share? Part II

  Olivier Giovannoni
  Abstract

  In this second part of our study we survey the rapidly expanding empirical literature on the determinants of the functional distribution of income. Three major strands emerge: technological change, international trade, and financialization. All contribute to the fluctuations of the labor share, and there is a significant amount of self-reinforcement among these factors. For the […]

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• Working Paper No. 803 May 21, 2014

  What Do We Know About the Labor Share and the Profit Share? Part I

  Olivier Giovannoni
  Abstract

  This series of working papers explores a theme enjoying a tremendous resurgence: the functional distribution of income—the division of aggregate income by factor share. This first installment surveys some landmark theories of income distribution. Some provide a technology-based account of the relative shares while others provide a demand-driven explanation (Keynes, Kalecki, Kaldor, Goodwin). Two questions […]

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• Working Paper No. 755 February 14, 2013

  The Economics of Inclusion

  Olivier Giovannoni, and Michael A. Valenti
  Abstract

  This paper presents a review of the literature on the economics of shared societies. As defined by the Club de Madrid, shared societies are societies in which people hold an equal capacity to participate in and benefit from economic, political, and social opportunities regardless of race, ethnicity, religion, language, gender, or other attributes, and where, […]

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• Working Paper No. 754 February 11, 2013

  Growth Trends and Cycles in the American Postwar Period, with Implications for Policy

  Olivier Giovannoni
  Abstract

  Do all types of demand have the same effect on output? To answer this question, I estimate a cointegrated vector autoregressive (VAR) model of consumption, investment, and government spending on US data, 1955–2007. I find that: (1) economic growth can be decomposed into a short-run (transitory) cycle gravitating around a long-run (permanent) trend made of […]

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• Working Paper No. 511 August 15, 2007

  The Fed’s Real Reaction Function

  James K. Galbraith, Olivier Giovannoni, and Ann J. Russo
  Abstract

  Using a VAR model of the American economy from 1984 to 2003, we find that, contrary to official claims, the Federal Reserve does not target inflation or react to “inflation signals.” Rather, the Fed reacts to the very “real” signal sent by unemployment, in a way that suggests that a baseless fear of full employment […]

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