Income Distribution in Macroeconomic Models

The book explores the intricate relationship between income and wealth distribution and its impact on the macroeconomy. It questions whether a more equal income distribution fosters or hinders macroeconomic growth and examines the evolution of wealth in a market economy. Drawing on advancements from the 1990s growth theory revival, the authors emphasize capital accumulation and long-term growth. They apply sophisticated optimization techniques to address market imperfections and political-economic dynamics, moving beyond traditional representative-agent models.