The Distribution of Value-Added in France, 1949-2008: Methodological Aspects

Abstract

The publication by INSEE of very long time series of national accounts makes it possible to have a look on the distribution of value-added and its evolution in France for nearly sixty years. Apart from updating the conclusions, the first part of this article studies to which extent conceptual and methodological innovations introduced by successive bases of national accounts may have an impact on the measurement of the distribution of value-added. In a second part, we revisit the theoretical determinants of the distribution of value-added, notably the influence of real interest rates. From an econometric point of view, this influence could be better understood (1) by distinguishing between the short-term and long-term effects of the cost of capital, as well as of the labour cost, on the distribution of value-added, and (2) by simultaneously analysing the distribution of value-added and the capital-labour substitution.National Income Accounting, Factor Income, Income Distribution, Labour Share, Capital Labour Ratio