On the desirability and the implementation of a factor share policy for Malta

Abstract

'What is produced is distributed in the process of production' is a simple economic statement implying, as often happens, complex connotations. For, the interrelationship between the production and the distribution of a given output is only crudely understood in economic theory. In addition, ideological conflicts regarding asset ownership, income distribution and wealth accumulation render an understanding of the production - distribution relationship more difficult still to achieve. A recurring socio-political concensus, effected through Government policies, becomes therefore essential for the attainment of a series of partial solutions through time.