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Income Diversification as Income Maximizing Strategy

Author

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  • Wolfgang Lechthaler

    (Kiel Institute for the World Economy)

Abstract

In a simple model, I demonstrate that the U-shaped relationship between income and income diversification typically found in developing countries can be explained without any risk considerations. It might be the result of pure income maximization in an environment with limited possibilities.

Suggested Citation

  • Wolfgang Lechthaler, 2010. "Income Diversification as Income Maximizing Strategy," Journal of Income Distribution, Ad libros publications inc., vol. 19(3-4), pages 9-16, September.
    • Handle: RePEc:jid:journl:y:2010:v:19:i:3-4:p:9-16
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    File URL: http://jid.journals.yorku.ca/index.php/jid/article/view/19660
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    More about this item

    Keywords

    income diversification; U-shape; developing countries;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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