Marx-Biased Technical Change and Income Distribution: A Panel Data Analysis
33 Pages Posted: 27 Jun 2018 Last revised: 4 Feb 2019
Date Written: February 2, 2019
This paper provides a further empirical evaluation of the Neoclassical theory of distribution as opposed to Marx-biased technical change (MBTC) by applying the theoretical and empirical framework developed by Foley and Michl (1999), Michl (1999, 2009) and Basu (2010) to a panel of countries. Basu (2010) developed a test based on cross-sectional data: we argue that a panel data analysis is instrumental in increasing the efficiency and validity of the test. Our results generalize Basu’s findings in providing support for MBTC and against the Neoclassical theory of income distribution.
Keywords: Technical Change, Income Distribution, Panel Data
JEL Classification: B51, C33, D33, O47
Suggested Citation: Suggested Citation