Innovation and Redistribution as Global Markets Drivers: Some Options of Economic Modeling

Growing literature considers inequality would drag effective demand in the global markets. This would thus be an important causation factor of the current crisis, while the debate remains open. The analysis considers hidden dynamics would tend to hide such causation in the current macroeconomic representation. The purpose is to propose an alternative framework intended to contribute in considering these hidden dynamics. This uses total factor productivity and the level of inequality as macroeconomic factors of production and demand, rather than capital and labor. A graphic geometrical multidimensional representation on a two dimensional plane allows depicting and proposing some options of equations for modeling these dynamics.