An increase in the wage share has contradictory effects on the subaggregates of aggregate demand. Private consumption expenditures ought to increase because wage incomes typically are associated with higher consumption propensities than capital incomes. Investment expenditures ought to be...

This paper aims at empirically estimating the demand effects of changes in functional income distribution for Austria. Based on a Post-Kaleckian macro model, this paper estimates the effects of a change in the wage share on the main demand aggregates. The results for the behavioral functions for...

During the forecast period 2012-2016 growth will be weaker than in the recent past. On average real GDP is expected to increase by 1.6 percent per year. Thus, the Austrian economy will expand at a slower pace than on average during the years preceding the financial and economic crisis. The...

Economic activity lost momentum globally and especially in the euro area over the course of 2011. In the euro area, economic indicators point to persistent stagnation in the first half of 2012. This development is also weighing on the Austrian economy. However, signs are also emerging that it...

The Austrian economy will not regain significant momentum before 2014. During the forecast period from 2012 until 2016 real GDP will grow by 1.6 percent per year on average. Exports will expand by 5.5 percent per year. Imports, by contrast, will increase by only 5.1 percent. The average...

The "Europe 2020" Strategy for growth and employment in the EU establishes a new framework for member countries' economic policies. Key elements are the national targets in five policy areas (employment, research and development, education, poverty, environment), the Stability and Growth Pact,...

The business cycle upturn in Austria is set to continue. Lively global demand is driving up exports, and also investment in machinery and equipment should post strong gains over the forecast period. Short-term indicators nevertheless point to some slackening during the remainder of the year. The...

Relative unit labour costs vis-à-vis trading partners are an important indicator of international competitiveness in the manufacturing sector. Unit labour costs are the main determinant for prices and consequently also for the competitiveness of a given sector or the economy as a whole,...

The global economic environment continues to weaken. Notably the euro crisis has been contributing to heightened uncertainty. This is having a noticeable effect on economic activity in Austria.

Austria's unit labour cost position improved thanks to the recovering economy and the related increase in productivity. Per-capita labour costs increased only slightly in manufacturing, while labour productivity per employee saw a greater rise. In general, unit labour costs in Austrian...