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

CEMA Working Paper No. 148

25 Pages Posted: 9 Nov 2001

Date Written: May 1999

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.

Keywords: Capital accumulation, income distribution, hypothesis testing

Suggested Citation

Coloma, German, Competition, Bargaining and Income Distribution in Argentina and the United States (May 1999). CEMA Working Paper No. 148, Available at SSRN: https://ssrn.com/abstract=289781 or http://dx.doi.org/10.2139/ssrn.289781

German Coloma (Contact Author)

CEMA University ( email )

Department of Economics
Av. Cordoba 374
Buenos Aires, Capital Federal C1054AAP
Argentina
+54 11 6314-3000 (Phone)
+54 11 4314-1654 (Fax)

HOME PAGE: http://https://ucema.edu.ar/german-coloma

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