Factor Shares and Savings in Endogenous Growth
NBER Working Paper No. 3851
This paper studies the distributive effects of growth when different agents' income is drawn from accumulated and non-accumulated factors of production in different proportions, notes that political interactions may contribute to determine factor shares and growth when income sources are heterogeneous, and suggests that distributional issues should be taken into account both when formulating growth-oriented policy prescriptions and when interpreting the wide dispersion of growth rates across economies and over time.
Published: American Economic Review, vol. 83, no. 5, December 1993