Inequality and aggregate demand

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Chapter 4 in Aggregate Demand, Inequality and Instability, 2016, pp 33-42 from Edward Elgar Publishing

Abstract: This chapter discusses the role that inequality can have on aggregate demand in a static environment. The literature distinguishes between wage-led and profit-led models where the concept of inequality can be included. In the present model, wealth is also considered. Furthermore, the necessity of referring to a dynamic analysis where income distribution and inequality are endogenous variables is put forward.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (6)

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