CAN INCOME EQUALITY INCREASE COMPETITIVENESS?

Arthur Fishman and Avi Simhon

No 14983, Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management

Abstract: This paper explores the relationship between income distribution, prices, production efficiency and aggregate output in a decentralized search economy. We show that income distribution determines how competitive the market is, and thereby affects production efficiency and aggregate output. It is shown that it is generally possible to engineer a judicious transfer of income from high to low income individuals which simultaneously increases income equality, competitiveness, and aggregate output.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Pages: 28
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:ags:huaedp:14983

DOI: 10.22004/ag.econ.14983

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