Title: Kaldor's theory of distribution: an information-theoretic approach

Authors: Amaresh Das; Frank Martin

Addresses: Department of Business Entrepreneurship & MIS, College of Business, Southern University at New Orleans, New Orleans, LA 70126, USA. ' Department of Business Entrepreneurship, College of Business, Southern University at New Orleans, New Orleans, LA 70126, USA

Abstract: Based on the assumptions of the neo-Keynesian distribution theory and using an information-theoretic approach, this paper derives the distribution of income between income units. This makes it possible for the theory of functional distribution to handle more complicated social relations and savings behaviour. This also helps us to understand the savings behaviour of individual households and the ways in which they aggregate over the entire population to produce national saving.

Keywords: entropy; production function; Gaussian distribution; Pasinetti paradox; Kaldor; theory of distribution; information theory; income units; income distribution; social relations; saving behaviour; national savings; household savings.

DOI: 10.1504/IJOR.2012.048864

International Journal of Operational Research, 2012 Vol.15 No.2, pp.136 - 146

Published online: 11 Jan 2015 *

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