The Review of Economics and Statistics Vol. 69 No. 1 1987
The Effect of Reductions in Concentration on Income Distribution
Abstract
The simulation model of this study indicates that a decline in above n ormal profits associated with concentration will cause a redistribution of incom e from the highest of six income classes to low and middle income classes. The m agnitude of gains and losses range from 0.2 to 0.9 percent of income for reducti ons in four-firm concentration ratios to 50 percent in all manufacturing industr ies. The methodology uses consumer expenditure data and input-output information to estimate the impact on payments made to capital, and uses income tax data on income sources by income class to estimate the impact on income received from c apital ownership. Estimates of the change in profits resulting from a change in concentration are based on a published concentration-profits regression.
- DOI
- 10.2307/1937903
- Volume
- 69
- Issue
- 1
- Pages
- 75
- Sources
- crossref openalex