Market Mechanism, Optimum Resource Allocation and Distributive Justice

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  • 市場メカニズムと最適資源配分・所得分配機能

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In this paper we try to find the mechanisms that decide the behaviour of labour'srelative income share and asset share(1).It is usually assumed that the market mechanism so-called the "invisible hand"works well in adjusting the aggregate demand to the aggregate supply in an economyand that the optimal resource allocation will be achieved if the market mechanismworks well. However, it is usually not assumed that the "invisible hand" towards distributive justice does work.We suggest that the market mechanism towards "distributive justice" does work toa certain extent.However, it is the government's role firstly to secure the "primary goods" for everyperson, secondly to prepare and maintain the social and economic framework for faircompetition and thirdly, to prevent and remedy the overshooting of economic fluctuationand distributional inequality.We suggest four hypotheses on the behaviour of income and asset distribution.

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