Profit Sharing,停滞レジームと金融の不安定性

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  • Profit Sharing, Stagnationist Regime and Financial Instability
  • Profit Sharing テイタイ レジ ム ト キンユウ ノ フアンテイセイ

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We studied the effects of the profit-sharing and nonprofit-sharing rules in a macrodynamic model of financial instability. The profit-sharing rule refers to the compensation system that gives a fraction of a firm's profits to its union or workers. Many people believed that the Japanese economy was strong because Japan adopted the "profit-sharing rule" (or the so-called Japanese management system) in the 1980s. However, Japan was trapped in a prolonged recession after the "bubble economy" collapsed in 1990. This led to the criticism of the Japanese management system. Many studies have discussed the effects of adopting the profit-sharing rule since Weitzman (1984) advocated the rule as a prescription for the stagflation in the 1970s. Weitzman (1985, 1987) analyzed the effects of the profit-sharing rule by using macro models of monopolistic competition. Fung (1989) and Sorensen (1992) considered the effects by a simple duopoly model. Freeman and Weitzman (1987) demonstrated that in the Japanese economy, bonuses perform the role of the profit-sharing rule in that bonuses are much more sensitive than wages to profits. Moreover, Fung (1989) suggested that the profit-sharing rule may be a crucial element in the Japanese economic success until the 1980s. Fanti and Manfredi (1998) investigated the effects of the profit-sharing rule on Goodwin's growth cycle model and demonstrated that the profit-sharing rule stabilizes the economy. In contrast, Steindl (1952) indicated that consumer demand would stagnate, since rising profit margins would imply an increasing share of profit. This would lead to a "stagnationist" regime requiring to consider the nonprofit-sharing rule. However, these literatures do not consider financial factors. Minsky (1986) introduced the financial instability hypothesis, proposing that the complicated financial structure underlying the capitalist economy generates business fluctuations and crises. Therefore, we discuss the notion of stagnationist regime in the macrodynamic model of financial instability and examine the effects and implications of the profit-sharing rule. We argue that the profit-sharing rule would make the economy unstable but that the instability does not depend on financial factors.

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