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Function distribution of income in recent years considering Ricardo’s theory

Function distribution of income in recent years considering Ricardo’s theory.

 

The issue of the functional distribution of income has become fashionable again in light of the decline in the
labour share over the past 2-3 decades, and the macroeconomic implications that flow from it. Considering our
look at the history of the theory of functional distribution, and Ricardo’s varying positions on the machinery
question (hint: read this week’s tutorial material!), what can we say about this current issue in terms of the
history of economic thought (and contemporary explanations as covered in the background readings)? Are
there any old ideas that are suddenly new again? Are there lessons for economics in terms arising out of how
the dominant approach to distribution theory has fared against recent developments?

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Function distribution of income in recent years considering Ricardo’s theory

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