When the Rising Tide Lifts All Boats Differently: Income Distribution Matters
DOI:
https://doi.org/10.33423/jabe.v23i2.4103Keywords:
business, economics, income distribution, aggregate demand, multiplier, macroeconomicsAbstract
In 2018, Alonzi, Drougas, and Condon (“ADC”) developed a simple macroeconomic model to analyze the effect of a less equal income distribution. This paper builds upon that paper by constructing a model incorporating a rising absolute income in both the high and low groups while at the same time allowing a higher proportion of income to go to the high-income group, but a lower proportion go to the low-income group. Notably, we find that the qualitative results of the “Reverse Robin Hood” case remain in the “Rising Tide” case but there are quantitative differences.
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Published
2021-05-11
How to Cite
Alonzi , L. P. ., Drougas , A. ., & Condon, D. . (2021). When the Rising Tide Lifts All Boats Differently: Income Distribution Matters . Journal of Applied Business and Economics, 23(2). https://doi.org/10.33423/jabe.v23i2.4103
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