Income distribution affects market demand and its elasticity, and, as a consequence, the optimal behaviour of firms and market equilibrium. This paper focuses on the effects of income polarization, and presents a model where - for any unimodal density function describing income distribution of...

Income distribution affects demand and its elasticity, and, as a consequence, the optimal behaviour of firms and market equilibrium. This paper focuses on the effects of income polarisation, and presents a model where - for any unimodal density function describing income distribution of the...

Economic analysts usually look at the supply side, the evolution and distribution of GDP among sectors. However, the demand structure offers a lot of interesting information on the characteristics of an economy. The present paper analyses the relationship of growing income inequality and crisis...