Francesco Purificato
Political and economic interaction: a new framework of analysis. Income distribution and economic growth

Abstract:The objective of this paper is to study the interaction process between the economic system and the political system. In order to deal this issue a new logical structure is elaborated, which integrates the “influence functions approach” (Becker, 1983), concerning the strategic interaction among interest groups, and the “interest function approach” (van Winden, 1983), concerning the political decision process; all framed in a suitable conceptual framework describing the operation of the economy. This logical structure can be used to study any issue involving interaction processes between the political system and the economic system. The paper also explores how economic interests linked to the distribution between profits and wages can influence political decisions and how in turns such decisions can influence the economy; in order to go into these issues, the neokaleckian approach (Rowthorn, 1982) is chosen to describe the operation of the economy. The analysis shows that the conditions for the political existence of the wages interest and of the profits interest are also necessary political conditions for a balanced evolution of the economy over time.

JEL: D72,E12,E25,O40.
Keywords: Gpressure, post keynesian, fiscal policy, income distributio, growth.



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