Distribution and growth. A dynamic approach

Fabrizio Patriarca () and Claudio Sardoni ()

Structural Change and Economic Dynamics, 2017, vol. 40, issue C, 1-9

Abstract: This paper studies the effects of an (exogenous) distributional shock on accumulation and growth. We develop a model that studies the dynamics of demand, profits and investment following a change of the nominal wage-rate, which is not accompanied by a simultaneous proportional change of prices to maintain the initial distribution of income. The initial income distribution, however, is eventually restored through a gradual adjustment of prices to the new level of the nominal wage-rate.

Keywords: Investment; Growth; Employment; Income distribution (search for similar items in EconPapers)
JEL-codes: E22 E24 E25 E31 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:40:y:2017:i:c:p:1-9

DOI: 10.1016/j.strueco.2016.11.001

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