DP576 Factor Shares and Savings In Endogenous Growth

Author(s): Giuseppe Bertola
Publication Date: October 1991
Keyword(s): Endogenous Growth, Income Distribution, Post-Keynesian Theory
JEL(s): D72, D74, O40
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=576

This paper studies the distributive effects of growth when different agents' income is drawn from accumulated and non-accumulated factors of production in different proportions. It also notes that political interactions may contribute to determine factor shares and growth when income sources are heterogeneous, and suggests that distributional issues should be taken into account both when formulating growth-oriented policy prescriptions and when interpreting the wide dispersion of growth rates across economies and over time.