SOME PRACTICAL ASPECTS OF INCOME DISTRIBUTION AND REDISTRIBUTION

Just a few days ago you heard Professor Alan Peacock's lecture dealing with some methodological aspects of income distribution- It is not my intention at all to enter into discussion of the same aspects of distribution so ably expounded by Professor Peacock, nor do I intend to discuss the problems of measurement of income distribution which must follow the discussion of methodological problems. I shall in fact assume all methodological questions away; and I assume further that, for the sake of argument at least, we all agree upon a specific method of the measurement of income inequality, say the Lorenz curve. Let us assume that in a given developing country an income distribution study has been done and the result is summarized in a Lorenz curve which indicates a certain state of inequality. Let us further assume that this given state of distribution of income is found to be unacceptable and the decisionmaker wishes to correct it towards a more equitable distribution of income. My intention here today is to concentrate upon the ways and means available to government for changing the dncome distribution. Towards a more equal one.