When the Rising Tide Lifts All Boats Differently: Income Distribution Matters

Authors

  • L. Peter Alonzi Dominican University
  • Anne Drougas Dominican University
  • Daniel Condon Dominican University

DOI:

https://doi.org/10.33423/jabe.v23i2.4103

Keywords:

business, economics, income distribution, aggregate demand, multiplier, macroeconomics

Abstract

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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Section

Articles