Cyclical Patterns in Japanese Manufacturing Firms: Analyzing Three Post- Keynesian Models

Abstract

This paper examines cyclical patterns of employment, capacity utilization, and profit share in Japanese manufacturing companies during 1978–2007. It evaluates significant behavioral equations to determine whether year-specific and trend data confirm three notable post-Keynesian macroeconomic models: the Kaldorian, the Robinsonian, and the Kaleckian. Some stylized facts about relationships among bivariate variables are presented. Results of the output growth equation on employment and profit share are statistically significant, and the signs are consistent with the Kaldorian model. Conversely, the Robinsonian and Kaleckian price adjustment models are not supported, while results of the investment function do not support the Kaleckian model.