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A positive theory of optimal personal income distribution and growth

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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.

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Authors and Affiliations

  1. Albert Ludwigs University Freiburg i. Br., Germany

    Gerold Blümle

  2. University of the Federal Armed Forces at Munich, Germany

    Friedrich L. Sell

Authors
  1. Gerold Blümle
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  2. Friedrich L. Sell
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Blümle, G., Sell, F.L. A positive theory of optimal personal income distribution and growth. Atlantic Economic Journal 26, 331–352 (1998). https://doi.org/10.1007/BF02299448

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