Skip Navigation

This Article
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Jong-Il, Y.
Right arrow Articles by Dutt, A. K.
Right arrow Search for Related Content
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

Copyright © Cambridge Political Economy Society

research-article

Government debt, income distribution and growth

You Jong-Il* and Amitava Krishna Dutt{dagger}

*Ritsumeikan University Japan
{dagger}University of Notre Dame USA

Abstract

This paper takes up the question of whether government debt worsens the distribution of income as tax revenues from workers are used to pay for the interest on the debt held by the rich. In so doing, we develop a post-Keynesian model in which growth is determined by aggregate demand rather than by die supply of resources and income is distributed between workers who earn wages and capitalists who receive profit and interest income. Our analysis highlights the possible expansionary effect of a rise in government debt which may raise the income of the workers, and it shows that its precise effect on income inequality depends on die circumstances under which government debt rises.

Manuscript received September 27, 1993; final version received June 8, 1994.


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?




Disclaimer:
Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.