Abstract

In an article, published by Kyklos 1965, K. W. Rothschild undertakes to introduce sociological factors into Kaldor's theory of distribution, therewith following a German tradition. In a long-run variant both saving ratios of capitalists and workers are supposed to be influenced by the level of the wages sum. Income distribution is thus explicitely depending upon wages policy. This article accepts the introduction of functionally dependent savings ratios and the consideration of wages policy as useful. The functions actually used by Rothschild however, are criticized for formal and expecially economic reasons: (a) the functions are empirically highly questionable; (b) there is no differentiation between payed-out and retained profits, i. e. the savings-ratio out of profits is without content; (c) the behaviour of groups is deduced from a picture of social structure no longer relevant. As the decisive relations do not stand critical examination, this attempt to introduce sociological factors into the theory of income distribution must therefore be considered a failure.

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