A positive theory of optimal personal income distribution and growth

Gerold Blümle and Friedrich Sell

Atlantic Economic Journal, 1998, vol. 26, issue 4, 352 pages

Abstract: The core of this paper (in a microeconomic foundation on three levels—income generation, income spending, and social climate of the society) consists of a concave relationship between the (in) equality of personal income and the per capita growth rate. The results mentioned are derived in conjunction with a social welfare function which is bounded by the concave function. Furthermore, ample empirical evidence is shown for the suggestions made in this paper. Copyright International Atlantic Economic Society 1998

Date: 1998
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DOI: 10.1007/BF02299448

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