Abstract
The subject-matter of the theory of income distribution is the study of the determination of the shares of the factors of production in the total output produced in the economy over a given time period. If, for simplicity, we assume that there are two factors of production, labour and capital, their shares are defined as follows
where w = wage rate r = rental of capital L = quantity of labour employed K = quantity of capital employed X = value of output produced in the economy.
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Pricing of Factors of Production and Income Distribution
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© 1979 A. Koutsoyiannis
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Koutsoyiannis, A. (1979). Pricing of Factors of Production and Income Distribution. In: Modern Microeconomics. Palgrave, London. https://doi.org/10.1007/978-1-349-16077-8_21
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DOI: https://doi.org/10.1007/978-1-349-16077-8_21
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