Download or read book How Macroeconomic Factors Affect Income Distribution written by Mr.Michael Sarel and published by International Monetary Fund. This book was released on 1997-11-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study develops a cross-section empirical framework to examine the relationship between the macroeconomic environment and trends in income distribution. The macroeconomic variables that are found to be associated with an improvement in income distribution are higher growth rate, higher income level, higher investment rate, real depreciation (especially for low-income countries), and improvement in terms of trade. The estimated significant effects of growth, income, and investment provide evidence that policies designed to promote investment and growth are likely also to contribute to an improvement in income distribution.