Premium
A Note on Lindahl's Theory of Distribution
Author(s) -
Guglielmo Chiodi,
K. Vela Velupillai
Publication year - 1983
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.1983.tb02663.x
Subject(s) - economics , redistribution (election) , distribution (mathematics) , mathematical economics , investment (military) , set (abstract data type) , subject (documents) , keynesian economics , neoclassical economics , positive economics , econometrics , welfare economics , mathematics , law , political science , computer science , mathematical analysis , politics , library science , programming language
SUMMARY It has become customary to dichotomize research results in functional income distribution in terms of neo‐classical vs . neo‐Keynesian theories with appropriate footnotes referring to fringe theories and distinguished predecessors. In this note the latter set is enlarged! E rik L indahl's masterly contribution to this subject is presented in a generalized version of a K aldor ‐P asinetti model. In Penning Politikens Medel (1930) L indahl poses the question of how savings will be adjusted to equilibrium with a higher level of investment which, in turn, has been caused by a lowering of the rate of interest. The equilibrium level is attained, in a characteristically K aldor ‐P asinetti way, by a redistribution of incomes.