The Rise and Fall of Unproductive Activities in the US Economy 1964–2015: Facts, Theory and Empirical Evidence

Tsoulfidis, Lefteris; Tsimis, Achilleas; Paitaridis, Dimitris

doi:10.13169/worlrevipoliecon.10.2.0142

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World Review of Political Economy

Volume 10, Issue 2

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Article: found

Is Open Access

The Rise and Fall of Unproductive Activities in the US Economy 1964–2015: Facts, Theory and Empirical Evidence

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Author(s): Lefteris Tsoulfidis , Achilleas Tsimis , Dimitris Paitaridis

Publication date (Print): 1 July 2019

Journal: World Review of Political Economy

Publisher: Pluto Journals

Keywords: unproductive expenditures, rate of profit, great recession, ARDL

Abstract

Content

Author and article information

Journal

Journal ID (doi): 10.2307/j50005553

Journal ID (jcode): worlrevipoliecon

Title: World Review of Political Economy

Publisher: Pluto Journals

ISSN: 2042-891X

ISSN: 2042-8928

Publication date (Print): 1 July 2019

Volume: 10

Issue: 2 ( doiID: 10.13169/worlrevipoliecon.10.issue-2 )

Pages: 142-170

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Publisher ID: worlrevipoliecon.10.2.0142

DOI: 10.13169/worlrevipoliecon.10.2.0142

SO-VID: a008a220-9760-43ca-8d13-a5175084c5ed

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ScienceOpen disciplines: Political economics

Keywords: ARDL,great recession,rate of profit,unproductive expenditures

References

Bacon, R., and W. Eltis. 1996. Britain's Economic Problem Revisited. London: Macmillan.
Baran, A. P., and P. A. Sweezy. 1966. Monopoly Capital: An Essay on the American Economic and Social Order. New York: Monthly Review Press.
Baumol, W. 1967. “Macroeconomics of Unbalanced Growth: The Anatomy of Urban Crisis.” American Economic Review 57 (3): 415–426.
Brown, R. L., J. Durbin, and J. M. Evans. 1975. “Techniques for Testing the Constancy of Regression Relationships over Time.” Journal of the Royal Statistical Society 37 (2): 149–192.
Dickey, D. A., and W. A. Fuller. 1979. “Distribution of the Estimators for Autoregressive Time Series with a Unit Root.” Journal of the American Statistical Association 74 (366): 427–431.
Enders, W. 2014. Applied Econometric Time Series. 4th ed. New York: Wiley.
Gillman, J. M. 1958. The Falling Rate of Profit. New York: Cameron Associates.
Granger, C. W. J. 1969. “Investigating Causal Relations by Econometric Models and Cross Spectral Methods.” Econometrica 37 (3): 424–438.
Granger, C. W. J. 1988. “Some Recent Developments in Granger Causality.” Journal of Econometrics 39 (1–2): 199–211.
Gujarati, D. N. 2006. Essentials of Econometrics. 3rd ed. New York: McGraw Hill.
Harris, R., and R. Sollis. 2003. Applied Time Series Modeling and Forecasting. New York: John Wiley.
Kwiatkowski, D., P. Phillips, C. B. Schmidt, and Y. Shin 1992. “Testing the Null Hypothesis of Stationarity against the Alternative of a Unit Root” Journal of Econometrics 54: 159–178.
MacKinnon, J. G. 1991. “Critical Values for Cointegration Tests.” In Long-Run Economic Relation, edited by R. F. Engle and C. W. J. Granger, 267–276. Oxford: Oxford University Press.
Mage, S. 1963. “The Law of the Falling Tendency of the Rate of Profit: Its Place in the Marxian Theoretical System and Relevance to the U.S. Economy.” PhD diss., Columbia University.
Marshall, A. (1890) 1920. Principles of Economics. London: Macmillan.
Marx, K. (1867) 1968. Capital I. Moscow: International Publishers.
Mejorado, A., and M. Roman. 2014. Profitability and the Great Recession. New York: Routledge.
Moseley, F. 1991. The Falling Rate of Profit in the Postwar United States Economy. New York: St. Martin's Press.
Narayan, P. K. 2005. “The Saving and Investment Nexus for China: Evidence from Cointegration Tests.” Applied Economics 37 (17): 1979–1990.
Paitaridis, D., and L. Tsoulfidis. 2012. “The Growth of Unproductive Activities, the Rate of Profit, and the Phase-Change of the U.S. Economy.” Review of Radical Political Economics 44 (2): 213–233.
Perron, P. 1994. Unit Root and Structural Change in Macroeconomic Time Series. London: Macmillan.
Perron, P. 1997. “Further Evidence on Breaking Trend Functions in Macroeconomic Variables.” Journal of Econometrics 80 (2): 355–385.
Perron, P., and T. J. Vogelsang. 1993 “The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis: Erratum” Econometrica 61(1): 248–249.
Pesaran, M. H., and Y. Shin. 1998. “An Autoregressive Distributed Lag Modeling Approach to Cointegration Analysis.” In Centennial Volume of Rangar Frisch, edited by S. Strom and A. Holly, 371–413. Cambridge: Cambridge University Press.
Pesaran, M. H., Y. Shin, and J. S. Richard. 2001. “Bounds Testing Approaches to the Analysis of Level Relationships.” Journal of Applied Econometrics 16 (3): 289–326.
Phillips, P. C. B., and P. Perron. 1988. “Testing for a Unit Root in Time Series Regression.” Biometrika 75 (2): 335–346.
Schumpeter, J. 1954. History of Economic Analysis. London: Routledge.
Shaikh, A. 1978. “An Introduction to the History of Crisis Theories.” In US Capitalism in Crisis, edited by Union for Radical Political Economics, 219–241. New York: Monthly Review Press.
Shaikh, A. 2016. Capitalism: Competition, Conflict, Crises. New York: Oxford University Press.
Shaikh, A., and E. Tonak. 1994. Measuring the Wealth of Nations: The Political Economy of National Accounts. New York: Cambridge University Press.
Smith, A. 1776. The Wealth of Nations. New York: The Modern Library.
Toda, H. Y., and P. C. B. Phillips. 1994. “Vector Autoregression and Causality: A Theoretical Overview and Simulation Study.” Econometric Reviews 13 (2): 259–285.
Toda, H. Y., and T. Yamamoto. 1995. “Statistical Inferences in Vector Autoregressions with Possibly Integrated Processes.” Journal of Econometrics 66 (1–2): 225–250.
Tsoulfidis, L. 2010. Competing Schools of Economic Thought. Heidelberg: Springer.
Tsoulfidis, L., and D. Paitaridis. 2019. “Capital Intensity, Unproductive Activities and the Great Recession of the US Economy.” Cambridge Journal of Economics 43 (3): 623–647. doi. org/10.1093/cje/bey051.
Tsoulfidis, L., and P. Tsaliki. 2014. “Unproductive Labour, Capital Accumulation and Profitability Crisis in the Greek Economy.” International Review of Applied Economics 28 (5): 562–585.
Tullock, G. 1967. “The Welfare Costs of Tariffs, Monopolies and Theft.” Western Economic Journal 5 (3): 224–232.
Vogelsang, T. J., and Perron, P. 1998. “Additional Tests for a Unit Root Allowing for a Break in the Trend at an Unknown Time.” International Economic Review 39: 1073–1100.

Comments

Comment on this article

[1] Bacon, R., and W. Eltis. 1996. Britain's Economic Problem Revisited. London: Macmillan.

[2] Baran, A. P., and P. A. Sweezy. 1966. Monopoly Capital: An Essay on the American Economic and Social Order. New York: Monthly Review Press.

[3] Baumol, W. 1967. “Macroeconomics of Unbalanced Growth: The Anatomy of Urban Crisis.” American Economic Review 57 (3): 415–426.

[4] Brown, R. L., J. Durbin, and J. M. Evans. 1975. “Techniques for Testing the Constancy of Regression Relationships over Time.” Journal of the Royal Statistical Society 37 (2): 149–192.

[5] Dickey, D. A., and W. A. Fuller. 1979. “Distribution of the Estimators for Autoregressive Time Series with a Unit Root.” Journal of the American Statistical Association 74 (366): 427–431.

[6] Enders, W. 2014. Applied Econometric Time Series. 4th ed. New York: Wiley.

[7] Gillman, J. M. 1958. The Falling Rate of Profit. New York: Cameron Associates.

[8] Granger, C. W. J. 1969. “Investigating Causal Relations by Econometric Models and Cross Spectral Methods.” Econometrica 37 (3): 424–438.

[9] Granger, C. W. J. 1988. “Some Recent Developments in Granger Causality.” Journal of Econometrics 39 (1–2): 199–211.

[10] Gujarati, D. N. 2006. Essentials of Econometrics. 3rd ed. New York: McGraw Hill.

[11] Harris, R., and R. Sollis. 2003. Applied Time Series Modeling and Forecasting. New York: John Wiley.

[12] Kwiatkowski, D., P. Phillips, C. B. Schmidt, and Y. Shin 1992. “Testing the Null Hypothesis of Stationarity against the Alternative of a Unit Root” Journal of Econometrics 54: 159–178.

[13] MacKinnon, J. G. 1991. “Critical Values for Cointegration Tests.” In Long-Run Economic Relation, edited by R. F. Engle and C. W. J. Granger, 267–276. Oxford: Oxford University Press.

[14] Mage, S. 1963. “The Law of the Falling Tendency of the Rate of Profit: Its Place in the Marxian Theoretical System and Relevance to the U.S. Economy.” PhD diss., Columbia University.

[15] Marshall, A. (1890) 1920. Principles of Economics. London: Macmillan.

[16] Marx, K. (1867) 1968. Capital I. Moscow: International Publishers.

[17] Mejorado, A., and M. Roman. 2014. Profitability and the Great Recession. New York: Routledge.

[18] Moseley, F. 1991. The Falling Rate of Profit in the Postwar United States Economy. New York: St. Martin's Press.

[19] Narayan, P. K. 2005. “The Saving and Investment Nexus for China: Evidence from Cointegration Tests.” Applied Economics 37 (17): 1979–1990.

[20] Paitaridis, D., and L. Tsoulfidis. 2012. “The Growth of Unproductive Activities, the Rate of Profit, and the Phase-Change of the U.S. Economy.” Review of Radical Political Economics 44 (2): 213–233.

[21] Perron, P. 1994. Unit Root and Structural Change in Macroeconomic Time Series. London: Macmillan.

[22] Perron, P. 1997. “Further Evidence on Breaking Trend Functions in Macroeconomic Variables.” Journal of Econometrics 80 (2): 355–385.

[23] Perron, P., and T. J. Vogelsang. 1993 “The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis: Erratum” Econometrica 61(1): 248–249.

[24] Pesaran, M. H., and Y. Shin. 1998. “An Autoregressive Distributed Lag Modeling Approach to Cointegration Analysis.” In Centennial Volume of Rangar Frisch, edited by S. Strom and A. Holly, 371–413. Cambridge: Cambridge University Press.

[25] Pesaran, M. H., Y. Shin, and J. S. Richard. 2001. “Bounds Testing Approaches to the Analysis of Level Relationships.” Journal of Applied Econometrics 16 (3): 289–326.

[26] Phillips, P. C. B., and P. Perron. 1988. “Testing for a Unit Root in Time Series Regression.” Biometrika 75 (2): 335–346.

[27] Schumpeter, J. 1954. History of Economic Analysis. London: Routledge.

[28] Shaikh, A. 1978. “An Introduction to the History of Crisis Theories.” In US Capitalism in Crisis, edited by Union for Radical Political Economics, 219–241. New York: Monthly Review Press.

[29] Shaikh, A. 2016. Capitalism: Competition, Conflict, Crises. New York: Oxford University Press.

[30] Shaikh, A., and E. Tonak. 1994. Measuring the Wealth of Nations: The Political Economy of National Accounts. New York: Cambridge University Press.

[31] Smith, A. 1776. The Wealth of Nations. New York: The Modern Library.

[32] Toda, H. Y., and P. C. B. Phillips. 1994. “Vector Autoregression and Causality: A Theoretical Overview and Simulation Study.” Econometric Reviews 13 (2): 259–285.

[33] Toda, H. Y., and T. Yamamoto. 1995. “Statistical Inferences in Vector Autoregressions with Possibly Integrated Processes.” Journal of Econometrics 66 (1–2): 225–250.

[34] Tsoulfidis, L. 2010. Competing Schools of Economic Thought. Heidelberg: Springer.

[35] Tsoulfidis, L., and D. Paitaridis. 2019. “Capital Intensity, Unproductive Activities and the Great Recession of the US Economy.” Cambridge Journal of Economics 43 (3): 623–647. doi. org/10.1093/cje/bey051.

[36] Tsoulfidis, L., and P. Tsaliki. 2014. “Unproductive Labour, Capital Accumulation and Profitability Crisis in the Greek Economy.” International Review of Applied Economics 28 (5): 562–585.

[37] Tullock, G. 1967. “The Welfare Costs of Tariffs, Monopolies and Theft.” Western Economic Journal 5 (3): 224–232.

[38] Vogelsang, T. J., and Perron, P. 1998. “Additional Tests for a Unit Root Allowing for a Break in the Trend at an Unknown Time.” International Economic Review 39: 1073–1100.