• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Norges Handelshøyskole
  • Department of Economics
  • Discussion papers (SAM)
  • View Item
  •   Home
  • Norges Handelshøyskole
  • Department of Economics
  • Discussion papers (SAM)
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

The principal problem in political economy : income distribution in the history of economic thought

Sandmo, Agnar
Working paper
Thumbnail
View/Open
SAM1513.pdf (565.2Kb)
URI
http://hdl.handle.net/11250/163454
Date
2013-09
Metadata
Show full item record
Collections
  • Discussion papers (SAM) [578]
Abstract
The paper considers the history of theories of income distribution, from the

time of Adam Smith until the 1970s. It is divided into two main parts. Part I

considers the positive theory of income distribution, beginning with the

classical economists’ analysis of the functional distribution of income between

wages, profits and rent. It goes on to present the new theories that emerged

with the marginalist revolution and which were based on maximizing

behaviour and market equilibrium. The main focus during the early stages of

the new developments was on the markets for consumer goods and the role of

marginal utility in price determination. The later neoclassical economists,

including Alfred Marshall and Knut Wicksell, paid more attention to the

special features that characterized the labour market and the role of marginal

productivity in wage formation. In the 20th century the neoclassical theory was

extended to include analysis of the role of imperfect competition, human

capital and risk-taking. Also included in this part of the paper is a discussion of

statistical and institutional approaches. Part II covers normative theories of

income distribution and their implications for redistributive policy. It begins

2

with a consideration of the value judgements implicit in the policy

recommendations of the classical economists and continues with the attempts

to establish an analytical foundation for welfare economics. The rise of

Paretian welfare theory with its emphasis on the impossibility of interpersonal

comparisons of utility made it difficult to draw conclusions regarding income

redistribution, but the older utilitarian approach, including equal sacrifice

theories, continued to live on in the modern analysis of optimal redistribution.

A short Part III contains some concluding reflections on the position of income

distribution theory within economics as a whole.
Publisher
Norwegian School of Economics. Department of Economics
Series
Discussion Papers;15/2013

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit