Working Paper: CEPR ID: DP576
Authors: Giuseppe Bertola
Abstract: This paper studies the distributive effects of growth when different agents' income is drawn from accumulated and non-accumulated factors of production in different proportions. It also notes that political interactions may contribute to determine factor shares and growth when income sources are heterogeneous, and suggests that distributional issues should be taken into account both when formulating growth-oriented policy prescriptions and when interpreting the wide dispersion of growth rates across economies and over time.
Keywords: endogenous growth; income distribution; post-Keynesian theory
JEL Codes: 040; 072; D74
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| income share of non-accumulated factors (D33) | overall saving rate (E21) |
| rentiers (J26) | support for investment incentives (G31) |
| capitalists (P12) | support for investment incentives (G31) |
| growth-oriented policies (O25) | income distribution (D31) |
| economic growth behavior (O49) | political interactions among heterogeneous agents (D72) |
| factor shares (D33) | growth rate (O40) |
| redistributive measures (H23) | Pareto improvements (D61) |