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Distribution of Agricultural Surplus and Industrial Takeoff

Bilancini, Ennio and D'Alessandro, S. Distribution of Agricultural Surplus and Industrial Takeoff. In: Geography, Structural Change and Economic Development : Theory and Empirics. Edward Elgar, pp. 227-240. ISBN 978 1 84844 229 0 (2009)

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This paper analyses how the distribution of agricultural product between landlords and peasants affects both industrial takeoff and aggregate income through the demand side. Using a model that builds on Murphy et al. (1989), we find that the relationship between peasants' share of agricultural product and aggregate income is either non-monotonic or positive. This induces a relationship between aggregate income and the degree of inequality which is negative under industrialization but can be either positive or negative when industrialization is absent. We also prove that, in contrast with Murphy et al. (1989), in order for industrialization to take place a middle class of land- and firm-owners is not required: if peasants' share of agricultural product is large enough, then the buying power of workers of both agricultural and manufacturing sectors is sufficient to trigger industrialization

Item Type: Book Section
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HJ Public Finance
Research Area: Economics and Institutional Change
Depositing User: Caterina Tangheroni
Date Deposited: 24 Jan 2018 10:04
Last Modified: 24 Jan 2018 10:04
URI: http://eprints.imtlucca.it/id/eprint/3868

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