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INTERNAL FINANCE AND MONOPOLY POWER IN CAPITALIST ECONOMIES: A REFORMULATION OF STEINDL'S GROWTH MODEL
Author(s) -
Dutt Amitava Krishna
Publication year - 1995
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.1995.tb00724.x
Subject(s) - economics , monopoly , capitalism , oligopoly , investment (military) , order (exchange) , capitalist economy , market economy , neoclassical economics , macroeconomics , finance , politics , political science , welfare , law
This paper develops a formalization of the model of growth developed by Steindl in chapter XIII of his Maturity and Stagnation in American Capitalism in order to examine the interaction of real and financial factors in capitalist economies. It will look at the short‐and long‐run behaviour of the economy in which firms have monopoly power, hold excess capacity, and finance a part of their investment spending out of internal savings. The analysis shows the possibility of instability in the economy due to financial and goods market considerations and their interaction, and considers the implications of financial factors for the long‐run effects of the rise of oligopoly.