Wealth inequality and aggregate demand

Arbeitspapier

The paper investigates how including the distribution of wealth changes the demand effects of redistributing functional income. It develops a model with an endogenous wealth distribution and shows that the endogenous rise in wealth inequality resulting from a redistribution towards profits weakens the growth effects of this redistribution. Consequently, a wage-led regime becomes more strongly wage-led. A profit-led regime on the other hand becomes less profit-led and there may even be a regime switch - in this case the short-run profit-led economy becomes wage-led in the long run due to the endogenous effects of wealth inequality. The paper thereby provides a possible explanation for the instability of demand regimes over time.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ifso working paper ; No. 4

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Factor Income Distribution ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; Macroeconomics: Consumption; Saving; Wealth ; Aggregate Factor Income Distribution ; Incomes Policy; Price Policy
• Thema: Wealth ; Distribution ; Aggregate Demand

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Ederer, Stefan ; Rehm, Miriam
• Ereignis: Veröffentlichung
• (wer): University of Duisburg-Essen, Institute for Socio-Economics (ifso)
• (wo): Duisburg
• (wann): 2019

Weitere Informationen

• Handle: http://hdl.handle.net/10419/215636
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ