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EVALUATING CHANGES IN THE DISTRIBUTION OF CAPITAL WEALTH
Author(s) -
Yunker James A.
Publication year - 1994
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1994.tb01353.x
Subject(s) - economics , capital (architecture) , distribution (mathematics) , welfare , inequality , wealth distribution , consumption (sociology) , microeconomics , income distribution , aggregate (composite) , distribution of wealth , social capital , labour economics , market economy , mathematics , mathematical analysis , social science , archaeology , sociology , history , materials science , composite material
A small‐scale general equilibrium model in which the distribution of capital wealth is a key parameter is employed to examine the potential economic consequences of greater capital wealth equality. Every performance indicator examined – aggregate income, consumption equality, social welfare in the sum‐of‐utilities sense, and aggregate saving –is improved by greater capital wealth equality. However, the bottom‐line social welfare gain, relative to the present high‐inequality situation – even from the maximum achievable level of complete equality in capital wealth distribution – would be numerically rather modest.