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Evaluating Changes in the Distribution of Capital Wealth

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Author Info
Yunker, James A
Abstract

A small-scale general equilibrium model in which the distribution of capital wealth is a key parameter is employed to examine the potential economic consequences of greater capital wealth equality. Every performance indicator examined--aggregate income, consumption equality, social welfare in the sum-of-utilities sense, and aggregate saving--is improved by greater capital wealth equality. However, the bottom-line social welfare gain, relative to the present high-inequality situation--even from the maximum achievable level of complete equality in capital wealth distribution--would be numerically rather modest. Copyright 1994 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Economic Inquiry.

Volume (Year): 32 (1994)
Issue (Month): 4 (October)
Pages: 597-615
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Handle: RePEc:oup:ecinqu:v:32:y:1994:i:4:p:597-615

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