Production Risk and the Functional Distribution of Income in a Developing Economy: Tradeoffs and Policy Responses*

Cecilia García-Peñalosa
GREQAM and CNRS
Stephen J. Turnovsky**

University of Washington
Revised version
October 2003

http://www.econ.washington.edu/user/...vsky-final.pdf

* Many people do not understand the systemic problem with the declining share of the national income that goes to labor. This paper sheds some light on this topic.