{"title":"The Stochastic Model of Technical Change and Profit Rates: Korean Economy (Manufacturing Sector: 1970–2015)","authors":"Deokmin Kim","doi":"10.1177/04866134221118954","DOIUrl":null,"url":null,"abstract":"This article aims to reconstruct major macroeconomic variables, including the profit rate in the Korean economy, by using the stochastic model of technical change. This model needs no a priori technological patterns concerning available technologies, such as the neoclassical production function or fixed coefficient technologies. This article provides a summary of the rate of profit, the productivity of capital, and labor productivity in the Korean manufacturing sector between 1970 and 2015. A multiple structural break model detects possible regime changes in the growth rate of each type of productivity. The innovation sets for the simulation are created based on this test. Furthermore, the article reconstructs the rate of profit, the productivity of capital, and labor productivity in Korea’s manufacturing sector and discusses a catching-up process by Korea with the United States, which the model reproduces. JEL Classification: E11, E17, O14, O33","PeriodicalId":46719,"journal":{"name":"Review of Radical Political Economics","volume":"9 1","pages":"290 - 308"},"PeriodicalIF":1.0000,"publicationDate":"2022-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Review of Radical Political Economics","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1177/04866134221118954","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This article aims to reconstruct major macroeconomic variables, including the profit rate in the Korean economy, by using the stochastic model of technical change. This model needs no a priori technological patterns concerning available technologies, such as the neoclassical production function or fixed coefficient technologies. This article provides a summary of the rate of profit, the productivity of capital, and labor productivity in the Korean manufacturing sector between 1970 and 2015. A multiple structural break model detects possible regime changes in the growth rate of each type of productivity. The innovation sets for the simulation are created based on this test. Furthermore, the article reconstructs the rate of profit, the productivity of capital, and labor productivity in Korea’s manufacturing sector and discusses a catching-up process by Korea with the United States, which the model reproduces. JEL Classification: E11, E17, O14, O33
期刊介绍：
The Review of Radical Political Economics (RRPE) promotes critical inquiry into all areas of economic, social, and political reality. As the journal of the Union for Radical Political Economics, RRPE publishes innovative research in political economy broadly defined including, but not confined to, Marxian economies, post-Keynesian economics, Sraffian economics, feminist economics, and radical institutional economics. We are actively seeking submissions concerned with policy, history of thought, and economics and the environment. RRPE reflects an interdisciplinary approach to the study, development, and application of radical political economic analysis to social problems.
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