JOURNAL OF APPLIED BUSINESS AND ECONOMICS
When the Rising Tide Lifts All Boats Differently: Income Distribution Matters
Author(s): L. Peter Alonzi, Anne Drougas, Daniel Condon
Citation: L. Peter Alonzi, Anne Drougas, Daniel Condon, (2021) "When the Rising Tide Lifts All Boats Differently: Income Distribution Matters," Journal of Applied Business and Economics, Vol. 23, Iss.2, pp. 227-244
Article Type: Research paper
Publisher: North American Business Press
Abstract:
In 2018, Alonzi, Drougas, and Condon (“ADC”) developed a simple macroeconomic model to analyze the effect of a less equal income distribution. This paper builds upon that paper by constructing a model
incorporating a rising absolute income in both the high and low groups while at the same time allowing a higher proportion of income to go to the high-income group, but a lower proportion go to the low-income group. Notably, we find that the qualitative results of the “Reverse Robin Hood” case remain in the “Rising Tide” case but there are quantitative differences.