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Income distribution in a monetary economy

Author

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  • Nazim Kadri Ekinci

    (Harran University)

Abstract

In a monetary economy capital is a fund. This idea is captured by the circuit of capital. We define a circuit for fixed capital and argue that it is closed when the fund that initiates it is recovered in a present value sense. The circuit of newly invested fixed capital must be equivalent to the comparable direct circuit of money. This is the condition for monetary equilibrium in the sense of Keynes. From this equivalence it is possible to determine what the imputation for fixed capital must be, implying a definitive income distribution. The solution implies that capital assets that last longerthan the period of the circuit earn pure rent.

Suggested Citation

  • Nazim Kadri Ekinci, 2013. "Income distribution in a monetary economy," PSL Quarterly Review, Economia civile, vol. 66(267), pages 435-455.
    • Handle: RePEc:psl:pslqrr:2013:45
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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/11365/11240
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    References listed on IDEAS

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    Cited by:

    1. Alessandro Roncaglia, 2013. "Introduction," PSL Quarterly Review, Economia civile, vol. 66(267), pages 369-370.

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    More about this item

    Keywords

    Economics; Macroeconomics; Post-Keynesian Economics;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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