ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Effects of Growth and Redistribution of Income on Consumer Demand

Effects of Growth and Redistribution of Income on Consumer Demand N Sreenivasa Iyengar What are the effects of redistribution of income and of growth in incomes of households on their consumption expenditure on essential goods and services? This article attempts to outline a method of estimating these effects. It shows, with the use of a simple model, that a reduction in the inequality of incomes will lead to an increase in the consumption of essential commodities, even when there is no rise in per capita income.

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