Technical progress and income distribution: the interpretation of Luiz Bresser-PereiraThe article examines Bresser-Pereira’s view on distribution of income, presented in his book Profit, Accumulation and Crisis, regarding the link between the rate of profit and the rate of interest. The author presents an alternative approach based on the recent contributions made by Carlo Panico and Massimo Pivetti, both from the University of Naples. Panico’s model emphasizes both, the risk-return elements and the “storage of value” aspect, another important function performed by money, which affect the distribution of income industrial capitalists, workers and bankers. The author also discusses the price formation methodology when technical change is presented, claiming that Sraffa’s model is more adequate to understand the evolution of the rate of profit in the long run.
Keywords:
History of economic thought; Bresser-Pereira