Income Distribution and Macroeconomics

  title={Income Distribution and Macroeconomics},
  author={Oded Galor and Joseph Zeira},
This paper analyzes the role of income distribution in macroeconomic analysis. The study demonstrates that the long-run equilibrium depends on the initial distribution of income. In accordance with empirical evidence concerning the correlation between income distribution and output, an economy that is characterized by a relatively equal distribution of wealth is likely to be wealthier in the long run. The study may, therefore, provide an additional explanation for the persistent differences in… Expand

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