An evaluation of German contributions to the theory of distribution

Abstract

The object of this thesis it to present and criticize recent distribution theories that have been published in the German language. The work of the following five authors is covered: G. Bombach, A. Stobbe, E. Preiser, W. Krelle, and E. Schneider. In 1959, Bombach published two articles containing three different theories of distribution. His "Simple Functional Model" deals primarily with the problem of distributional neutrality due to wage increases and simultaneous changes in the structure of employment. His "Functional Keynesian-Type Model" is concerned with growth and price-level problems. Finally, his "Theory of Distribution in the Short Period" is an application of Leontief's input-output analysis to this field. These three theories are critically analysed (sic.) from a neoclassical point of view. Stobbe's two publications in the area of distribution theory are dated 1960 and 1962. They contain two theories. One deals with "Short --Term Determinants of Income Distribution," where entrepreneurs are assumed to pursue a markup policy in setting prices. The other turns to the problem of "Long-Term Determinants of Income Distribution," where the long-run markup is explained endogenously. These two theories are also critically analysed (sic.). Preiser published a total of four articles on distribution theory between 1948 and 1961. The first is entitled "Property and Power in the Theory of Distribution." In it Preiser claims that the distribution of aggregate income is determined by the relative power position of the various sectors in an economy..