this paper is to show that in the model of wealth distribution as proposed by Stiglitz [2], the assumption of a 1 i n e a r savings function is a crucial one in the above sense. If one replaces this assumption by the assumption of a convex savings function, i.e. an increasing marginal propensity to save, one arrives at qualitatively different conclusions. Since the analysis is considerably
... [Show full abstract] simplified by choosing the more sophisticated approach of Duesenberry's Relative Income Hypothesis (which allows furthermore for a simple introduction of Harrod-neutral technical progress into the model), this will be done in the present paper