Competition, Bargaining and Income Distribution in Argentina and the United States

German Coloma
University of CEMA

May 1999

CEMA Working Paper No. 148

Abstract:

This paper presents a model of capital accumulation and income distribution that comes from the dynamic interaction between capitalists and workers in an economy. The model is later applied to fit data from the Argentine and the US economies, and to test if they are closer to the implications of a competitive or a bargaining solution. The first one is associated to a Walrasian equilibrium of the theoretical model, while the second is computed as a Nash cooperative solution. The empirical results obtained seem to confirm our original intuitions that the United States exhibits a greater degree of competitive behavior and bargaining forces have been more important in Argentina, but no single behavioral hypothesis is able to explain income distribution in any of the two countries.

Competition, Bargaining and Income Distribution in Argentina and the United States

Be the first to comment

Leave a Reply

Tu dirección de correo no será publicada.


*


Google Analytics