Theories of Income Distribution
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1 Theories of Income Distribution
2 Recent Economic Thought Series Warren J. Samuels, Editor Michigan State University East Lansing, Michigan, U.S.A. Other titles in the series: Feiwel, G.R., Samuelson and Neoclassical Economics Wade, L.L., Political Economy: Modern Views Zimbalist, A., Comparative Economic Systems: Recent Views Darity, W., Labor Economics: Modern Views Jarsulic, M., Money and Macro Policy Samuelson, L., Microeconomic Theory Bromley, D., Natural Resource Economics: Policy Problems and Contemporary Analysis Mirowski, P., The Reconstruction of Economic Theory Field, A.J., The Future of Economic History Lowry, S.T., Pre-Classical Economic Thought Officer, L.H., International Economics This series is devoted to works that present divergent views on the development, prospects, and tensions within some important research areas of international economic thought. Among the fields covered are macromonetary policy. public finance. labor and political economy. The emphasis of the series is on providing a critical, constructive view of each of these fields, as well as a forum through which leading scholars of international reputation may voice their perspectives on important related issues. Each volume in the series will be self-contained; together these volumes will provide dramatic evidence of the variety of economic thought within the scholarly community.
3 Theories of Income Distribution edited by Athanasios Asimakopulos McGill University... " Kluwer Academic Publishers Boston/DordrechtiLancaster
4 Contents Contributing Authors Preface 1 Introduction Athanasios Asimakopulos 2 The Classical Theory of Distribution J.C. Weldon 3 Marx's Theory of Income Distribution David P. Levine 4 Distribution: Neo-Classical Allan J. Braff 5 The Distribution Theory of Marshall's Principles John K. Whitaker 6 Post-Keynesian Theories of Distribution Athanasios Asimakopulos 7 The Neo-Ricardian Approach and the Distribution of Income Alessandro Roncaglia 8 The General Equilibrium Theory of Distribution Michael C. Howard vii ix v
5 Vi CONTENTS 9 Factor Shares in Canada, the United States, and the United Kingdom 199 Camilo Dagum 10 Economic Development and Income Distribution Robin Rowley Author Index Subject Index
6 Contributing Authors Athanasios Asimakopulos McGill University 855 Sherbrooke St. West Montreal, Quebec, Canada, H3A 2T7 Allan J. Braff HCR 68, Box 36 Cushing, Maine Camilo Dagum Faculty of Social Sciences University of Ottawa Ottawa, Ontario, Canada, K1 N 6N5 Michael C. Howard University of Waterloo Waterloo, Ontario, Canada, N2L 3G1 David P. Levine University of Denver University Park Denver, Colorado Alessandro Roncaglia University of Rome Via Nomentana, Rome, Italy Robin Rowley McGill University 855 Sherbrooke St. West Montreal, Quebec, Canada, H3A 2T7 J.C. Weldon McGill University 855 Sherbrooke St. West Montreal, Quebec, Canada, H3A 2T7 John K. Whitaker University of Virginia Rouss Hall Charlottesville, Virginia VB
7 Preface This book brings together the work of scholars who have written for it independent essays in their areas of particular expertise in the general field of income distribution. The first eight chapters provide a review of the major theories of income distribution, while the final two are concerned with problems of empirical estimates and inferences. One of these chapters presents estimates of factor shares in national income in the United States, the United Kingdom and Canada, while the other examines how relationships between the size distribution of income and economic development are being investigated. A convenient way of conveying an understanding of how economic theorists have dealt with the distribution of income is to examine separately each major approach to this subject. Each contributor was thus assigned a particular approach, or a major theorist. No attempt was made to avoid the apparent duplication that occurs when the same references are examined by different contributors. The reader gains by seeing how the same material can be treated by those looking at it from different perspectives. A chapter each has been devoted to Marx and Marshall. The choice of the former for such treatment needs no comment, but perhaps something should be said for singling out the latter. Alfred Marshall was firmly in the neo-classical school, but he saw himself as carrying on the classical tradition, and he wanted to balance demand and marginal productivity influences with the classical emphasis on the importance of factor supply. This, and the relatively little attention paid to Marshall's theory of distribution in the literature, led to the decision to give him separate treatment. Professor Whitaker's masterly essay on the distribution theory of Marshall's Principles of Economics admirably fills this gap in the literature. ix
8 x PREFACE It is with sorrow and a deep sense of loss that I report the death of Professor Weldon at the end of February He completed the final draft of his chapter on the classical theory of distribution during the summer of 1986, just before his fatal illness made sustained work impossible. I gratefully acknowledge the assistance of my wife, Marika, in helping me to edit this volume. She has shared the proofreading chores, and she took responsibility for the index. The editing of this volume was completed while I was on a sabbatical leave that was financed in part by the Social Sciences and Humanities Research Council.
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