A Neoclassical Theory of Wealth Distribution
The linear savings function in Stiglitz' model of wealth distribution is replaced by the assumption that the average savings propensity of each individual is determined by its relative income position and the marginal propensity to save is an increasing function of individual income. It is shown that the model generates locally stable two-class equilibria under certain conditions which are analyzed carefully. In other words, Pasinetti-type class savings behaviour is explained endogeneously. A two-class property of nonstationary solutions is explained
|Date of creation:||1975|
|Date of revision:|
|Publication status:||Published in Jahrbücher für Nationalökonomie und Statistik 1/2 189(1975): pp. 78-96|
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