chapter  V
10 Pages


We may now go on to consider that division of the aggregate income of any community, which is produced by economic forces in this sense. We may begin by considering in an abstract form in this chapter the general case of the division of the income created by the joint action of a number of factors of production. What are the causes which determine the absolute and relative shares of the total product accruing to such factors ? We shall then consider in the five following chapters certain particular cases, which are included in this general case. In this group of chapters it will be convenient to ignore the fact that part of the income accruing to factors of production may be transferred from one person to another in the form of income from private gifts and to ignore also, except where the contrary is stated, transfers brought about by means of taxation and public expenditure.