Inflation, growth, and distribution: The Brazilian economy after the post war

摘要

Following Marglin and Bhaduri (1990), the purpose of this paper is to investigate empirically the interaction between income distribution and growth of aggregate demand during the 1951-89 period in Brazil. Applying Hein and Vogel's (2008) methodology we conclude that the Brazilian economy showed a profit-led demand regime. In a context of high inflation, high concentration of markets, and wage control, retained profits were the main source to finance new capital. In this sense, we found a large sensitivity of investment relative to the wage share, a result that is compatible with a consumption pattern based on high income, which supported the growth trend with low wages observed during the period.