Abstract
This paper explores the relationship between income distribution, prices, production efficiency and aggregate output in a decentralized search economy. We show that income distribution determines how competitive prices are and thereby affects production efficiency and aggregate output. It is shown that, under reasonable assumptions, it is possible to engineer a judicious transfer of income from high to low income individuals, which increases income equality, leads to more competitive prices, and increases aggregate output.
| Original language | English |
|---|---|
| Article number | 8 |
| Journal | B.E. Journal of Economic Analysis and Policy |
| Volume | 11 |
| Issue number | 1 |
| DOIs | |
| State | Published - 2011 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 1 No Poverty -
SDG 10 Reduced Inequalities
Keywords
- income distribution
- inequality
- price dispersion
- search
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Economics, Econometrics and Finance (miscellaneous)
Fingerprint
Dive into the research topics of 'Income distribution, search and market efficiency'. Together they form a unique fingerprint.Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver