search query: @indexterm CAPITAL ACCUMULATION / total: 28
reference: 23 / 28
| Author: | Milesi-Ferretti, G. |
| Title: | The dynamics of inflation and capital accumulation in previously centrally planned economies: a theoretical framework |
| Journal: | Economica
1995 : NOV, VOL. 62:248, p. 441-460 |
| Index terms: | ECONOMICS INFLATION CAPITAL ACCUMULATION |
| Language: | eng |
| Abstract: | The corporate governance problem of state enterprises in former communist economies can give rise to exercise wage claims and/or capital decumulation. This paper focuses on these problems, highlighting the dynamic links between wage behaviour, the fiscal deficit, inflation and the capital stock. The fiscal impact of higher wages works through the reduction in public enterprises' profits and hence government revenues from profit taxes. If wage and tax claims on firms' revenue are "too high", capital can be run down until wage claims are moderated by the fall in output. |
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