How Does the Middle-Class Share Affect Growth and Distribution in a Three-Class Economy?

Hiroaki Sasaki and Thu Giang Huong Pham

MPRA Paper from University Library of Munich, Germany

Abstract: This study presents a three-class economy model (workers, middle class, and capitalists) and investigates how the middle-class share evolves over time. It also examines the relationship between the middle-class share and economic growth. Depending on the parameters and initial conditions, three different long-run situations arise: (i) an Anti-Dual equilibrium, in which workers and capitalists coexist while the middle class vanishes; (ii) a Pasinetti equilibrium, in which all three classes coexist; and (iii) a Dual equilibrium, in which workers and the middle class coexist while capitalists vanish. An expanding middle-class share either increases or decreases economic growth depending on the conditions.

Keywords: classical growth model; middle class; income distribution (search for similar items in EconPapers)
JEL-codes: E24 E25 E32 (search for similar items in EconPapers)
Date: 2025-04-21
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/124475/1/MPRA_paper_124475.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:124475

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().