Functional income distribution, effective demand and wealth in Denmark – insights from an empirical stock-flow consistent model

Figures & data

Figure 1. (a) Real GDP growth. (b) Unemployment rate.

Figure 2. (a) Adjusted wage share. (b) Current account to GDP.

Figure A1. Impact of stronger unions on income distribution, utilization and accumulation.

Figure A2. Impact of stronger unions on aggregate demand.

Figure A3. Impact of stronger unions on the determinants of NFC’s investment.

Figure A4. Impact of stronger unions on the determinants of Households’ consumption.

Figure A5. Impact of stronger unions on the determinants of foreign trade.

Table C1. Financial balance sheet for Denmark – ‘+’ expresses an asset, while ‘-‘ is associated with a liability.

	Households	Non-financial corporations	Financial corporations	General Government	Rest of the world	Total
Interest Bearing Assets	${+\mathit{\text{IBA}}}_t^H$	${+\mathit{\text{IBA}}}_t^N$	${-\mathit{\text{IBA}}}_t^F$	${+\mathit{\text{IBA}}}_t^G$	${+\mathit{\text{IBA}}}_t^W$	0
Equities	${+\mathit{\text{EQ}}}_t^H$	${-\mathit{\text{EQ}}}_t^N$	${-\mathit{\text{EQ}}}_t^F$	$+{\mathit{\text{EQ}}}_t^G$	${-\mathit{\text{EQ}}}_t^W$	0
Securities	${+\mathit{\text{SEC}}}_t^H$	${-\mathit{\text{SEC}}}_t^N$	${+\mathit{\text{SEC}}}_t^F$	${-\mathit{\text{SEC}}}_t^G$	${+\mathit{\text{SEC}}}_t^W$	0
Insurance	$+{\mathit{\text{INS}}}_t^H$	$0$	$-{\mathit{\text{INS}}}_t^F$	$0$	${+\mathit{\text{INS}}}_t^W$	0
Loans	${-L}_t^H$	${-L}_t^N$	${+L}_t^F$	${-L}_t^G$	${-L}_t^W$	0
Net worth	$W_t^H$	$W_t^N$	$W_t^F$	$W_t^G$	$W_t^W$	0

Table C2. Transaction flow matrix for Denmark – ‘-’ is associated with an outflow of the sector.

	Households		Non-financial corporations		Financial corporations		General Government		Rest of the world		Total
	Current	Capital	Current	Capital	Current	Capital	Current	Capital	Current	Capital
Private consumption	$-C_t$		$C_t$								0
Investment (Buildings and Dw)		$-I_{\mathit{\text{BDt}}}^H$	$I_{\mathit{\text{BDt}}}^{}$	$-I_{\mathit{\text{BDt}}}^N$		$-I_{\mathit{\text{BDt}}}^F$		$-I_{\mathit{\text{BDt}}}^G$			0
Investment (Equipment)		$-I_{\mathit{\text{Et}}}^H$	$I_{\mathit{\text{Et}}}^{}$	$-I_{\mathit{\text{Et}}}^N$		$-I_{\mathit{\text{Et}}}^F$		$-I_{\mathit{\text{Et}}}^G$			0
Investment (Inventories)			$I_{\mathit{\text{INVt}}}^{}$	$-I_{\mathit{\text{INVt}}}^N$
Government consumption			$G_t$				$-G_t$				0
Net export			${\mathit{\text{NX}}}_t$						$-{\mathit{\text{NX}}}_t$		0
Wage Bill	${\mathit{\text{WB}}}_t^H$		$-{\mathit{\text{WB}}}_t^{}$						${\mathit{\text{WB}}}_t^W$		0
Gross Operating Surplus	${\mathit{\text{GOS}}}_t^H$		${\mathit{\text{GOS}}}_t^N$		${\mathit{\text{GOS}}}_t^F$		${\mathit{\text{GOS}}}_t^G$				0
Net indirect Taxes			${-\mathit{\text{NIT}}}_t^N$				${\mathit{\text{NIT}}}_t^G$		$-{\mathit{\text{NIT}}}_t^W$		0
Net Interest on Assets	${\mathit{\text{NIA}}}_t^H$		${\mathit{\text{NIA}}}_t^N$		${\mathit{\text{NIA}}}_t^F$		${\mathit{\text{NIA}}}_t^G$		${\mathit{\text{NIA}}}_t^W$		0
Net Income on Insurance	${\mathit{\text{NII}}}_t^H$		${\mathit{\text{NII}}}_t^N$		${\mathit{\text{NII}}}_t^F$		${\mathit{\text{NII}}}_t^G$		${\mathit{\text{NII}}}_t^W$		0
Net dividends	${\mathit{\text{ND}}}_t^H$		${\mathit{\text{ND}}}_t^N$		${\mathit{\text{ND}}}_t^F$		${\mathit{\text{ND}}}_t^G$		${\mathit{\text{ND}}}_t^W$		0
Directs Taxes	${-\mathit{\text{DT}}}_t^H$		${-\mathit{\text{DT}}}_t^N$		${-\mathit{\text{DT}}}_t^F$		${\mathit{\text{DT}}}_t^G$		${-\mathit{\text{DT}}}_t^W$		0
Social Contributions	${-\mathit{\text{SC}}}_t^H$				${\mathit{\text{SC}}}_t^F$		${\mathit{\text{SC}}}_t^G$		${\mathit{\text{SC}}}_t^W$		0
Social Benefits	${\mathit{\text{SB}}}_t^H$				${-\mathit{\text{SB}}}_t^F$		${-\mathit{\text{SB}}}_t^G$		${\mathit{\text{SB}}}_t^W$		0
Other current Transfers	${\mathit{\text{OCT}}}_t^H$		${-\mathit{\text{OCT}}}_t^N$		${\mathit{\text{OCT}}}_t^F$		${-\mathit{\text{OCT}}}_t^G$		${\mathit{\text{OCT}}}_t^W$		0
Savings/current account	${-S}_t^H$	$S_t^H$	${-S}_t^N$	$S_t^N$	${-S}_t^F$	$S_t^F$	$-S_t^G$	$S_t^G$	$-{\mathit{\text{CA}}}_t^{}$	${\mathit{\text{CA}}}_t^{}$	0
Capital Transfers		${\mathit{\text{KT}}}_t^H$		${\mathit{\text{KT}}}_t^N$		${-\mathit{\text{KT}}}_t^F$		${-\mathit{\text{KT}}}_t^G$		${-\mathit{\text{KT}}}_t^W$	0
Others		${-\mathit{\text{NP}}}_t^H$		${-\mathit{\text{NP}}}_t^N$				${\mathit{\text{NP}}}_t^G$		${\mathit{\text{NP}}}_t^W$	0
Net Lending		${\mathit{\text{NL}}}_t^H$		${\mathit{\text{NL}}}_t^N$		${\mathit{\text{NL}}}_t^F$		${\mathit{\text{NL}}}_t^G$		${\mathit{\text{NL}}}_t^W$	0
Adjustment		${\mathit{\text{adj}}}_t^H$		${\mathit{\text{adj}}}_t^N$		${\mathit{\text{adj}}}_t^F$		${\mathit{\text{adj}}}_t^G$		${\mathit{\text{adj}}}_t^W$	0
Δ Interest Bearing Assets		${-\Delta \mathit{\text{IBA}}}_t^H$		${-\Delta \mathit{\text{IBA}}}_t^N$		${\Delta \mathit{\text{IBA}}}_t^F$		${-\Delta \mathit{\text{IBA}}}_t^G$		${-\Delta \mathit{\text{IBA}}}_t^W$	0
Δ Equities		${-\Delta \mathit{\text{EQ}}}_t^H$		${\Delta \mathit{\text{EQ}}}_t^N$		${-\Delta \mathit{\text{EQ}}}_t^F$		${-\Delta \mathit{\text{EQ}}}_t^G$		${\Delta \mathit{\text{EQ}}}_t^W$	0
Δ Securities		${-\Delta \mathit{\text{SEC}}}_t^H$		${\Delta \mathit{\text{SEC}}}_t^N$		${-\Delta \mathit{\text{SEC}}}_t^F$		${\Delta \mathit{\text{SEC}}}_t^G$		${-\Delta \mathit{\text{SEC}}}_t^W$	0
Δ Insurance		${-\Delta \mathit{\text{INS}}}_t^H$		${-\Delta \mathit{\text{INS}}}_t^N$		$\Delta {\mathit{\text{INS}}}_t^F$		${-\Delta \mathit{\text{INS}}}_t^G$		${-\Delta \mathit{\text{INS}}}_t^W$	0
Δ Loans		${\Delta L}_t^H$		${\Delta L}_t^N$		${-\Delta L}_t^F$		${\Delta L}_t^G$		${\Delta L}_t^W$	0
Rev. Interest Bearing Assets		${-\mathit{\text{rev}}}_{\mathit{\text{IBA}}}^H$		${-\mathit{\text{rev}}}_{\mathit{\text{IBA}}}^N$		${\mathit{\text{rev}}}_{\mathit{\text{IBA}}}^F$		${-\mathit{\text{rev}}}_{\mathit{\text{IBA}}}^G$		${-\mathit{\text{rev}}}_{\mathit{\text{IBA}}}^W$	0
Rev. Equities		${-\mathit{\text{rev}}}_{\mathit{\text{EQ}}}^H$		${\mathit{\text{rev}}}_{\mathit{\text{EQ}}}^N$		${-\mathit{\text{rev}}}_{\mathit{\text{EQ}}}^F$		${-\mathit{\text{rev}}}_{\mathit{\text{EQ}}}^G$		${\mathit{\text{rev}}}_{\mathit{\text{EQ}}}^W$	0
Rev. Securities		${-\mathit{\text{rev}}}_{\mathit{\text{SEC}}}^H$		${\mathit{\text{rev}}}_{\mathit{\text{SEC}}}^N$		$-{\mathit{\text{rev}}}_{\mathit{\text{SEC}}}^F$		${\mathit{\text{rev}}}_{\mathit{\text{SEC}}}^G$		${-\mathit{\text{rev}}}_{\mathit{\text{SEC}}}^W$	0
Rev. Insurance		${-\mathit{\text{rev}}}_{\mathit{\text{INS}}}^H$		${-\mathit{\text{rev}}}_{\mathit{\text{INS}}}^N$		${\mathit{\text{rev}}}_{\mathit{\text{INS}}}^F$		${-\mathit{\text{rev}}}_{\mathit{\text{INS}}}^G$		${-\mathit{\text{rev}}}_{\mathit{\text{INS}}}^W$	0
Rev. Loans		${\mathit{\text{rev}}}_L^H$		${\mathit{\text{rev}}}_L^N$		${-\mathit{\text{rev}}}_L^F$		${\mathit{\text{rev}}}_L^G$		${\mathit{\text{rev}}}_L^W$	0
Rev. Building and Dwellings		$-{\mathit{\text{rev}}}_{\mathit{\text{BD}}}^H$		$-{\mathit{\text{rev}}}_{\mathit{\text{BD}}}^N$		$-{\mathit{\text{rev}}}_{\mathit{\text{BD}}}^F$		$-{\mathit{\text{rev}}}_{\mathit{\text{BD}}}^G$			0
Rev. Equipment		$-{\mathit{\text{rev}}}_E^H$		$-{\mathit{\text{rev}}}_E^N$		$-{\mathit{\text{rev}}}_E^F$		$-{\mathit{\text{rev}}}_E^G$			0
Δ Net worth		${-\Delta W}_t^H$		${-\Delta W}_t^N$		${-\Delta W}_t^F$		${-\Delta W}_t^G$		$\Delta \mathit{\text{NIIP}}$	0

Figure E1. Real GDP and employment, actual vs baseline model.

Figure E2. Real investment (left) and real consumption (right).