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Consumption and income distribution: a proposal for a new reading of Keynes' thinking

Antonio García-Lizana and Salvador Pérez-Moreno

The European Journal of the History of Economic Thought, 2012, vol. 19, issue 1, 45-65

Abstract: This paper critically reviews the evolution of the theoretical framework and related empirical evidence following Keynes' theory of aggregate consumption spending, focusing on the importance of the impact of income distribution on consumption. We propose a new reading of Keynes' theories in order to assess how they can improve our knowledge regarding economic performance and overcome some current limitations and inconsistencies in the literature. In this line, we consider Keynes' original, overall theory, which is more general and comprehensive than other later contributions, together with its main psychological and sociological elements.

Date: 2012
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DOI: 10.1080/09672560903552603

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