In economics, income distribution is how a nation’s total GDP is distributed amongst its population.
Income and distribution has never been a central concern of economic theory and economic policy. Classical economists such as Adam Smith, Thomas Malthus and David Ricardo were mainly concerned with factor income distribution, that is, the distribution of income between the main factors of production, land, labour and capital.
Modern economists have also addressed this issue, but have been more concerned with the distribution of income across individuals and households. Important theoretical and policy concerns include the relationship between income inequality and economic growth.
The distribution of income within a community may be represented by the Lorenz curve. The Lorenz curve is closely associated with measures of income inequality, such as the Gini coefficient.
Read more about Income Distribution: Measurement, Causes, Distribution Measurement Internationally, Trends
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... The index can be turned into a normative measure by imposing a coefficient to weight incomes ... Greater weight can be placed on changes in a given portion of the income distribution by choosing, the level of "inequality aversion", appropriately ... Atkinson index becomes more sensitive to changes at the lower end of the income distribution as approaches 1 ...
... Income distribution is the other pillar of Kalecki’s efforts to build a business cycle theory ... derive the wage share in the national income ... pass to the other term, we have or, which is the same where is the wage share in the national income and is the relation between the cost of raw materials and wages ...
... Classical problems the theory of value and the theory of income distribution ... in 1956, where Kaldor presented a review of the history of several theories of distribution, covering the period from Ricardo to Keynes ... who earn profits, workers who earn wages and landowners whose income comes from the rent of land ...
... In 2008, a study found that the average family income for Israel's Jewish majority was NIS 14,157.(USD $3,795) per month, while the average income for Israel's Arab minority was NIS 8,151 (USD ...
... In the United States, income has become distributed more unequally over the past 30 years, with those in the top quintile (20%) earning more than the bottom 80% combined ...
Famous quotes containing the words distribution and/or income:
“In this distribution of functions, the scholar is the delegated intellect. In the right state, he is, Man Thinking. In the degenerate state, when the victim of society, he tends to become a mere thinker, or, still worse, the parrot of other men’s thinking.”
—Ralph Waldo Emerson (1803–1882)
“Work though we must, our jobs do not automatically determine our priorities concerning our marriages, our children, our social life, or even our health. It’s still life, constrained as it may be by limited disposable income or leisure time, and we’re still responsible for making it something we enjoy or endure.”
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