Summary
In an input-output framework, income distribution among classes depends on final demand. Traditionally, it has been assumed that the policy-maker selects a distribution vector maximizing his preference function, and it has been attempted to determine this function by an interview. Here, we assume that the policy-maker does not know his preference function but constructs its relevant parts in a communication process with his adviser. This process converges to a (classwise) Pareto-optimal distribution vector and under some further assumptions, any such vector may be attained in principle. Colombian data are used for illustration.
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I am indebted to Dr. Jacques Melitz for improving my English and to Mr. Roland Fahrion for computational assistance. Nevertheless, I assume sole responsibility for any remaining deficiencies of this paper.
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Jaksch, H.J. Income distribution as an objective in development planning. De Economist 122, 1–22 (1974). https://doi.org/10.1007/BF01680189
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DOI: https://doi.org/10.1007/BF01680189