Engelbert Stockhammer  
 Vienna University of Economics & Business Administration
 Department of Economics, VWL1
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work in progress and recent working papers

Books

Stockhammer, Engelbert, 2004. The rise of unemployment in Europe. A Keynesian approach. Edward Elgar


an earlier version of Chapter 1 was published as PERI working paper 76

Publications in international peer-refereed journals

Stockhammer, Engelbert, 2009. Economic effects of European integration on Austria. International Review of Applied Economics 23, 1: 19-40

Stockhammer, E, Onaran, Ö, Ederer, S. 2009. Functional income distribution and aggregate demand in the Euro area.   Cambridge Journal of Economics 33 (1): 139-159

Stockhammer, E, Onaran, Ö, 2009. National and sectoral factors in wage formation in Central and Eastern Europe. forthcoming in European Journal of Industrial Relations

Stockhammer, E, Ederer, S, 2008. Demand effects of a falling wage share in Austria. Empirica 35, 5: 481-502

Stockhammer, Engelbert, 2008. Some Stylized Facts on the Finance-Dominated Accumulation Regime. Competition and Change 12, 2: 189-207 link to the working paper version. (version prior to revisions)

Onaran, Ö. and Stockhammer, E.  2008. The effect of FDI and foreign trade on wages in the Central and Eastern European Countries in the post-transition era: A sectoral analysis. Structural Change and Economic Dynamics.19 (1), 66-80 link to the working paper version. (version prior to revisions)

Stockhammer, Engelbert, 2008. Is the NAIRU a Monetarist, New Keynesian, Post Keynesian or Marxist theory? Metroeconomica 59 (4), 479-510
link to the working paper version (version prior to revisions)

Onaran, Ö. and Stockhammer, E.  2008. Income distribution, growth, and conflict: the aggregate demand nexus. METU Studies in Development 35 (1), 209-224

Stockhammer, Engelbert, 2008. Wage coordination or wage flexibility? Intervention 5 (1), 54-62
 
Stockhammer, E. and Ramskogler, P, 2008.Uncertainty and exploitation in history. Journal of Economic Issues 42 (1), 175-94. link to the working paper version (version prior to revisions)

Stockhammer, Engelbert, 2007. Wage moderation doesn't work. Review of Radical Political Economics 39 (3), 391-97

Stockhammer, Engelbert, 2007. Uncertainty, class and power. International Journal of Political Economy 35 (4), 29-45

Steidl, A, Stockhammer, E, Zeitlhofer, H, 2007. Relations among Internal, Continental, and Transatlantic Migration in Late Imperial Austria. Social Science History 31, 1: 61-92

Stockhammer, Engelbert (2005/2006). Shareholder value-orientation and the investment-profit puzzle. Journal of Post Keynesian Economics 28, 2: 193-216  link to the working paper version (version prior to revisions)

Onaran, Ö, Stockhammer, E. 2005.  "Two Different Export-oriented Growth Strategies: Accumulation and Distribution a la Turca and a la South Korea" Emerging Markets Finance and Trade 41 (1),65-89 

Stockhammer, E. Onaran, Ö, 2004. Accumulation, distribution and employment: a structural VAR approach to a Kaleckian macro model. Structural Change and Economic Dynamics SCED 15 (4), 421-447 abstract

Stockhammer E., 2004. Financialization and the Slowdown of Accumulation.  Cambridge Journal of Economics 28 (5), 719-41

Stockhammer, E., 2004. Explaining European Unemployment: Testing the NAIRU Theory and a Keynesian Approach. International Review of Applied Economics IRAE 18 (1) 3-24. abstract

Stockhammer E., 2004. Is There an Equilibrium Rate of Unemployment in the Long Run? Review of Political Economy. RPE 16 (1) 59-77 

Stockhammer, E, Obermayr, B, Hochreiter, H, Steiner, K, 1997. The ISEW as an Alternative to GDP in Measuring Economic Welfare.in: Ecological Economics, vol. 21: 19-34

Publications in other journals or book chapters

  • Stockhammer, E, 2008. Kasinokapitalismus mit staatlichen Fremdheilungskräften. Finanzkrise: Chronologie, Ursachen und wirtschaftspolitische Reaktionen.Grundrisse 28 (Winter 2008)

  • Stockhammer, E, 2008. Von der sub-prime Krise zur Finanzkrise. Ökonomische Entwicklungen und wirtschaftspolitische Reaktionen. Kurswechsel 2/2008:73-82

  • Stockhammer, E, 2008.  Rudolf Hilferdings Finanzkapital zwischen marxistischer Orthodoxie und aktueller Relevanz. Walter Baier, Lisbeth N. Trallori, Derek Weber (Hrsg.): Otto Bauer und der Austromarxismus. „Integraler Sozialismus“ und die heutige Linke. Berlin: Dietz, pp. 159-166

  • Stockhammer, E, Logeay, C, 2008Reallöhne: Kontraproduktive Kürzungen. Wirtschaftsdienst 88 (2): 77-78

  • Stockhammer, E, 2008.Anatomie und Auswirkungen der US-Immobilienkrise. Von der sub-prime Krise zur Wirtschaftskrise?  Grundrisse 25 (Frühling 2008): 21-24

  • Stockhammer, E, 2007. Funktionale Einkommensverteilung und aggregierte Nachfrage im Euro-Raum. Wirtschaft und Gesellschaft 33, 2: 175-98
  • Stockhammer, Engelbert, 2007. Drei neoliberale Mythen zu Löhnen und Profiten. WISO. Wirtschafts- und Sozialpolitische Zeitschrift 30, 1: 49-72
  • Pirker, Reinhard, Stockhammer, Engelbert. 2006. Zur Aktualität austromarxistischen ökonomischen Denkens: Max Adler und Rudolf Hilferding. Kurswechsel (4): 27-36
  • Stockhammer, Engelbert (2006). Makroökonomische Effekte der EU Integration auf Österreich. WISO. Wirtschafts- und Sozialpolitische Zeitschrift. 29, 3: 89-106
  • Onaran, Ö, Stockhammer, E (2006). "The effect of distribution on accumulation, capacity utilization and employment: testing the wage-led hypothesis for Turkey" In: Ric Holt and Steven Pressman (editors)"Empirical Work in Post Keynesian Economics", M.E. Sharpe
  • Stockhammer, Engelbert (2006).  Wirtschaftliche Effekte des EU Beitritts. Simulationsergebnisse. Wirtschaft und Gesellschaft 32, 1: 65-94
  • Onaran, Ö and Stockhammer, E., 2006. Do profits affect investment and employment? An empirical test based on the Bhaduri-Marglin model. In: Eckhard Hein, Arne Heise, Achim Truger (eds.): Wages, employment, distribution and growth.  Palgrave/Macmillan.download working paper version
  • Stockhammer, Engelbert, 2005. „Arbeitsmarktrigiditäten oder Nachfragemangel? Die Ursachen der Arbeitslosigkeit in Europa“ In: Eckhard Hein, Arne Heise, Achim Truger (ed.): Löhne, Beschäftigung, Verteilung und Wachstum.  Metropolis Verlag
  • Stockhammer, Engelbert, 2005. Wirtschaftliche Effekte des EU Beitritts. Ein Literaturüberblick. Wirtschaft und Gesellschaft 31 (3): 325-54
  • Stockhammer, Engelbert, 2005.  Marxsche Wert- und Krisentheorie. Ein Bericht aus dem angelsächsischen Elfenbeinturm. Grundrisse 15: 15-24
  • Stockhammer,. Engelbert, 2005. Prognosen oder Projektionen? Kritische Anmerkungen zur österreichischen Diskussion der Effekte des EU-Beitritts. Kurswechsel 2/2005: 90-95
  • Stockhammer, E, 2003. Aktienmaerkte, Shareholder Value und Investitionen. Berichte und Studien 1/2003: 121-39 abstract
  • Stockhammer, E, 2003. NAIRU Theorie und Keynesianische Ökonomie. Wirtschaft und Gesellschaft 29, 2: 189-213 Zusammenfassung
  • Stockhammer, E. 2003. Stock markets, shareholder value and investment. Focus on Austria 1/2003: 95-110
  • Onaran, O, Stockhammer, E, 2002. "A comparison of accumulation regimes and export-oriented growth strategies in Turkey and South Korea" IFAS-Forum 1-2/2002: 22-27
  • Stockhammer, Engelbert, 2001. Finanzialisierung, Corporate Governance und Investitionen. Kurswechsel 2/2001: 19-28 
  • Stockhammer, E, 2000. Krise oder finanzdominertes post-fordistisches Akkumulationsregime? Kurswechsel 4/2000: 41-53 
  • Stockhammer, E. 1999. The Rise of Rentiers and the Decline of Labour. Changes in the Functional Income Distribution. Wissensbank Zum Thema 
  • Hammer, N, Stockhammer, E, 1995. Regulationstheorie und Soziale Struktur der Akkumulation. in: Kurswechsel 3/95, S. 93-110 
  • Hochreiter, H, Obermayr, B, Steiner, K, Stockhammer, E, 1995. Der Index of Sustainable Economic Welfare (ISEW) - Eine Empirische Studie zur Wohlstandsentwicklung in Österreich von 1955 bis 1992. in: Schriftenreihe des IUW, Februar 1995, 526 S. 

Book reviews

Review of: Das Ende der Arbeitslosigkeit (Flassbeck, H, Spiecker, F). Wirtschaft und Gesellschaft 34 (1): 119-121
Review of: Das Schanier der Macht (Michael Willenbücher). Grundrisse 26
Review of: Capitalism unleashed (Andrew Glyn). www.eaepe.org
Review of: Fighting Unemployment (John Howell, ed.) Intervention. Zeitschrift für Ökonomie 3 (2), 372-374
Review of: The economics of demand-led growth (M. Setterfield, ed.) EAEPE Newsletter 35, 21-22
Review of: A History of Post Keynesian Economics (J. King); Intervention. Zeiftschrift für Ökonomie 1 (2),  151-52
Review of: Credit, Money and Production. An Alternative Post-Keynesian Approach (L-P Rochon); EAEPE-Newsletter No. 27, Jan. 2002

Working papers 

These papers usually have already been subject to revison, please don't hesitate to contact me if you want the most recent version.

Abstracts


Stockhammer, E., 2004. Explaining European Unemployment: Testing the NAIRU Theory and a Keynesian Approach. International Review of Applied Economics forthcoming
The aim of the paper is to compare the NAIRU hypothesis regarding European unemployment and a Keynesian approach to the issue and to evaluate them econometrically. For the NAIRU explanation, wage push variables are key in explaining the rise of European unemployment, for a Keynesian approach capital accumulation is. The theories are tested using time series data for Germany, France, Italy, the UK and the USA, using the seemingly unrelated regression method (SUR). Unemployment benefits, union density and the tax wedge are used as wage push variables, and the growth of business capital stock as the accumulation variable. The NAIRU specification performs poorly, with only the tax wedge having a positive effect on unemployment as predicted and only unemployment benefits having a negative effect on employment growth. However the results are not robust to changes in the specification. The Keynesian approach is more successful, with capital accumulation being statistically significant in all countries and robust to changes in the specification. Moreover, it can be pooled across countries. 
Key words: unemployment, NAIRU, Keynesian theory, labor market flexibility, capital accumulation
JEL code: E24

Stockhammer E., 2004. Financialization and the Slowdown of Accumulation. accepted for publication by the Cambridge Journal of Economics. 
Over the past decades financial investment of non-financial businesses has been rising and accumulation of capital goods has been declining. The first part of the paper offers a novel theory to explain this phenomenon. Financialization, the shareholder revolution and the development of a market for corporate control have shifted power to shareholders and thus changed management priorities, leading to a reduction in the desired growth rate. In the second part the link between accumulation and financialization is tested econometrically by means of a time series analysis of aggregate business investment for USA, UK, France, and Germany. Extensive tests of robustness are performed. For the first three countries evidence supporting the negative effect of financialization on accumulation is found.
JEL code: E2, D2, G2
Keywords: financialization, business investment, class analysis, theory of the firm
 

Stockhammer E., 2004. Is There an Equilibrium Rate of Unemployment in the Long Run? Review of Political Economy. (for a downloadable version see the working papers section)
This paper examines the existence and stability of a long-run equilibrium rate of unemployment in a Post-Keynesian growth model and contrasts it with the NAIRU model. In the latter the equilibrium rate of unemployment determines unanticipated inflation in the short run and actual unemployment and output in the long run. The real balance effect plays the pivotal role in the transition from the short run to the long run. For the Keynesian model we take the Marglin-Bhaduri (1990) model as our starting point and complement it by Okun's law for the labor market and a wage curve type of relation for distribution. The distinction between wage-led and profit-led growth regimes in the Marglin-Bhaduri model turns out to be crucial for the long-run equilibrium rate of unemployment. In the profit-led regime, there is a stable equilibrium rate of unemployment that, NAIRU-like, determines growth. In the wage-led regime, however, the equilibrium rate of unemployment is not stable. The long run thus is but a succession of short-run equilibria. Therefore the goods market dominates the labor market even in the long run.
Keywords: growth theory, unemployment, Keynesian economics, NAIRU
JEL classification: E12, E 24 

Stockhammer, E, 2003. Aktienmaerkte, Shareholder Value und Investitionen. Berichte und Studien 1/2003: 121-39
Diese Studie untersucht die Auswirkungen der Aktienma ‹rkte auf die Unternehmensinvestitionen. Neben den direkten Finanzeffekten werden verschiedene indirekte Mechanismen,wie z.B.die Allokation der Investitionen,der Einfluss auf die Bilanzen und Stabilita ‹t des Finanzsystems, die Beeinflussung des Konsums durch den Vermo ‹genseffekt sowie Corporate-Governance-Effekte beschrieben und diskutiert.Eingehender werden vor allem der intuitiv besonders ansprechende direkte Effekt und der indirekte Corporate-Governance-Effekt behandelt.Die Ergebnisse empirischer Untersuchungen u ‹ber den Finanzierungseffekt sind u ‹berraschend,aber eindeutig:Die Aktienbo ‹rsen spielen bei der Finanzierung von Investitionen nur eine geringe Rolle,und die Investitionsta ‹tigkeit reagiert auf Fluktuationen der Aktienkurse —wenn u ‹berhaupt —nur schwach.In ju ‹ngster Zeit wurde der Einfluss von Vera ‹nderungen in der Corporate Governance deutlich.Dazu stellt dieser Beitrag ein postkeynesianisches Modell vor und stellt Ergebnisse vor,denen zufolge mehr Einfluss der Aktiona ‹re zu einem Ru ‹ckgang der Investitionen gefu ‹hrt haben ko ‹nnte.

Stockhammer, E, 2003. NAIRU Theorie und Keynesianische Ökonomie. Wirtschaft und Gesellschaft 29, 2: 189-213
Massenarbeitslosigkeit ist eines der schwerwiegendsten ökonomischen Probleme Europas. Die gängigste Erklärung des Phänomens ist die NAIRU Theorie, in deren Zentrum eine inflations-neutrale Arbeitslosenrate steht, die als relative exogen betrachtet wird. Sie wird, gemäss dieser Theorie, von der Ausgestaltung des Arbeitsmarkts und des Sozialsystems bestimmt. Die Politikvorschläge der NAIRU Theorie umfassen Kürzungen des Arbeitslosengeldes, Senkung der Lohnebenkosten, Senkung von Mindestlöhnen, Lockerung des Kündigungsschutzes, kurz Sozialabbau und Flexibilisierung des Arbeitsmarkts.
Die keynesianische Theorie hat keine einheitliche Reaktion auf die NAIRU Theorie und keine einheitliche alternative Erklärung des Anstiegs der Arbeitslosigkeit in Europa hervorgebracht. Während ein Teil der keynesianischen Diskussion die NAIRU als theoretisch inadäquates Konzept ablehnt, da die Arbeitsnachfrage von den Absatzerwartungen der Unternehmen abhänge und nicht von den Reallöhnen, betrachtet ein anderer Teil die NAIRU als ein sinnvolles Konzept, allerdings sei die NAIRU nicht exogen. Im Gegenteil sie wird von der wirtschaftlichen Entwicklung selbst bestimmt. Als Mechanismen, die zur Endogenisierung der NAIRU beitrage, werden Hysteresis und Kapitalakkumulation hervorgehoben. Wie in der empirischen Untersuchung gezeigt haben beide Faktoren einen starken Einfluss auf die Arbeitslosigkeit, während Arbeitsmarktinstitutionen kaum Effekte zeigen. Dies bedeutet, dass Arbeitsmarktflexibilisierung, wie sie z.B. von Gerhard Schroeder in seiner Rede vom 14. März angekündigt, ohne Nachfragestimulierung kaum positive Arbeitsmarkteffekte zeigen wird.
 

Stockhammer, E, Obermayr, B, Hochreiter, H, Steiner, K, 1997. The ISEW as an Alternative to GDP in Measuring Economic Welfare.in: Ecological Economics, vol. 21: 19-34
 

Stockhammer, E. Onaran, Ö, 2002. Accumulation, distribution and employment: A Structural VAR Approach to a Post-Keynesian Macro Model.  Vienna University of Economics & B.A. Working Paper in Growth and Employment in Europe: Sustainability and Competitiveness, No. 20, May 2002
The paper investigates the relation between effective demand, income distribution and unemployment empirically. A Kaleckian macro model is presented and tested by means of a structural vector autoregression (VAR) model. The hypotheses explored focus on the determination of unemployment. The VAR model consists of capital accumulation, capacity utilization, the profit share, unemployment and the growth of labor productivity and is estimated for the USA, UK and France. We find that employment is demand-led and that income distribution has little effect on either demand or employment. Technological progress effects income distribution as well as employment.
JEL classification: E1, E12, E2, E3
Keywords: Keynesian economics, macroeconomics, capital accumulation, distribution, unemployment, structural vectorautoregression
 

Onaran, Özlem, Stockhammer, Engelbert, 2002. Two Different Export-oriented Growth Strategies under a Wage-led Accumulation Regime: à la Turca and à la South Korea. PERI working paper No. 38
The aim of the paper is to compare the relationship between distribution, growth, accumulation and employment in Turkey and South Korea. These countries represent two different export-oriented growth experiences. The results of the adjustment experiences of both countries are in striking contrast to orthodox theory, however they also present counterexamples to each other in terms of their ways of integrating into the world economy. Thereby they provide examples for comparing different economic policies. The paper tests whether accumulation and employment are wage-led in these two countries by means of a post- Keynesian open economy model, that includes a demand-driven labor market and a reserve army effect in the Marxian sense. The model is estimated in a structural vector autoregression
form, in order to capture the complex simultaneous interaction between distribution, accumulation, growth and employment within a systems approach. This model, and the method of estimation are the two innovations of this paper in addressing the crucial policy issues related with structural adjustment problems in developing countries. The results show
that decreasing the wage share does not stimulate accumulation, growth and employment. Interestingly, the relation between wage share, investment, growth and employment is similar in both Turkey and South Korea; however the former experienced low and the latter high growth rates due to different export-oriented growth strategies. The explanation of this
difference is found in the field of institutions, power structures, and state policies.
JEL classification: E120, E270, E650, O110
Keywords: Accumulation, distribution, export-oriented growth, structural adjustment, post-
Keynesian economics 

Onaran, Ö, Stockhammer, E, 2001. The effect of distribution on accumulation, capacity utilization and employment: testing the wage-led hypothesis for Turkey. Discussion Papers of the Istanbul Technical University 01/1 
This paper presents an empirical analysis of the impact of distribution on accumulation, capacity utilization and employment for the case of Turkey. The impact of distribution on growth, accumulation and employment continues to be the focus of an ongoing debate within the discipline of macroeconomics. Current orthodoxy, which perceives wages merely as a cost item, would expect a pro-capital redistribution of income to be associated with a higher level of economic activity and employment. Post-Keynesian macroeconomics challenges this position by pointing out the dual function of wages as a component of aggregate demand, as well as a cost item. The need for empirical analysis of the relationship between distribution and growth is particularly pronounced in the case of developing countries, where the pro-capital incomes policies of structural adjustment programs implemented in the last two decades have not brought much more than disappointingly low rates of accumulation in many cases.  Turkey, who has been a strict follower of the standard recipes of IMF and the World Bank, is an interesting case to illustrate the unexpected results for the orthodoxy in terms of the impact of distribution on accumulation and employment. The aim of the paper is, first, to evaluate whether accumulation and employment are wage-led or profit-led. This is done by means of a post-Keynesian open economy model in a structural vector autoregression form. This estimation, which is a novel application within the post-Keynesian literature, is, implicitly, the second aim of the paper. The results point out that accumulation and employment are wage led, and the growth regime is stagnationist in Turkey. 
JEL code: E120, E270, E650, O110 
 
Stockhammer, E., Explaining European Unemployment: Testing the NAIRU Theory and a Keynesian Approach, Vienna University of Economics and Business Administration Working Papers,  No. 68, February 2000. 
Please contact the author for a revised version of this paper.

Stockhammer, E., Robinsonian and Kaleckian Growth. An Update on Post-Keynesian Growth Theories, Vienna University of Economics and Business Administration Working Papers,  No. 67, October 1999. 
The aim of the paper is to give an overview over basic models of Post-Keynesian growth theory. Two major families of growth models are discussed, one developed by Joan Robinson, the other by Michal Kalecki. Both share an independent investment function that depends on income distribution and a savings function that depends on income distribution. The core difference that the Robinsonian 
model assumes full capacity utilization in the long run, while the Kaleckian model has capacity utilization as an endogenous variable. The characteristics of these models and in particular the effects of changes in the savings propensity and the relation between distribution and growth are highlighted and contrasted. A short run Keynes-Kalecki model is as a benchmark case.
 


Engelbert Stockhammer
Dept. of Economics, VWL 1
Wirtschaftsuniversität Wien
Augasse 2-6,
A - 1090 Vienna, Austria		 engelbert.stockhammer@wu-wien.ac.at
Tel: +43(1)31336-4509,
Fax +43(1)31336-728