Tag Archives | Alternative Theories of Distribution

Alternative Theories of Distribution (With Formula) | Theories | Economics

The theory of distribution deals essentially with the determination of the levels of payment to the various factors of production, i.e., the prices of the economy's productive resources. The theory of income distribution is related to factor pricing. It is a segment of general equilibrium theory, inasmuch as a change in the level of wages, interest rates, or rents has [...]

By Anushree A|2017-03-04T14:07:44+05:30March 1, 2017|Theories of Distribution|Comments Off

Alternative Theories of Distribution | Income | Economics

Economists have developed alternative theories which deal explicitly with problems of macro distribution. There are two alternative theories discussed below: 1. Macro-marginal productivity theories: These theories are based on the postulated existence of a macro-production function for the whole economy of the following type: Q = f (K, L, l) where Q stands for GNP, K for society's stock of [...]

By Nipun S|2017-01-13T05:55:20+05:30January 13, 2017|Theories of Distribution|Comments Off