The Distribution of National Income in Underdeveloped Countries
One of the first things that becomes clear when one starts to think about the problems of income distribution in the less developed countries is that the analytical tools we are accustomed to use for economically advanced countries won’t do. We need something different. Modern models of income distribution may, like Kaldor’s,2 assume full employment of the factors of production in a highly capitalistic economy; or they may, like Boulding’s,3 rest on the assumptions of underemployment of factors and perfectly elastic supply; but our analysis will have to work with underemployment and inelastic supply for as long as underemployment lasts.
KeywordsIncome Distribution Public Official National Income Inflationary Pressure Cash Holding
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