Distribution

Distribution (JEL D3) analyses how income and wealth are distributed among individuals and factors of production.

Scope

It covers factor shares, the personal distribution of income and wealth, the measurement of inequality, and theories of distribution.

Sub-topics

• General
• Personal Income, Wealth, and Their Distributions
• Factor Income Distribution
• Other

Core questions

• How is income distributed among people and factors?
• How should inequality be measured?
• What drives changes in inequality?
• How do factor prices determine distribution?

Key concepts

• Factor shares
• Income and wealth distribution
• Gini coefficient
• Atkinson index
• Kuznets curve
• Inequality measurement

Key theories

Growth and inequality

Kuznets hypothesized an inverted-U relation between development and inequality.

Measuring inequality

Atkinson grounded inequality measurement in social-welfare theory.

History

The economics of distribution combines marginal-productivity factor-share theory with the measurement of personal inequality (Kuznets, Atkinson) and recent work on top incomes and wealth.

Debates

Does growth reduce inequality?

Whether the Kuznets-curve relation holds or inequality rises with development.

Key figures

• Simon Kuznets
• Anthony Atkinson

Seminal works

• kuznets-1955
• atkinson-1970

Frequently asked questions

What is the Kuznets curve?

Kuznets's hypothesized inverted-U: inequality first rises then falls as an economy develops.