DISTRIBUTION (Lat. distributio, from dist ribuere, to distrihute. front (as-, apart + trilowre. to give, from t•ibus, tribe). The de partment of political economy devoted to the con sideration of the reward: which are allotted to the several factor, in production. It is a famil iar :IXi0111 of political eeolionly that land. labor, and capital are united in the production of good-, and that to end' is accorded a share of the uct. Distribution studies the laws which gm- ern the recompense of the several factors, and thus includes the law of rent, the law of wages, and the law of interest and It is as sunted the three factors are in possession of three different set- of persons. although this is not. essential to the formulation of law-. The union in one person of two of the factors would give to him a mixed reward. the componen'ts of which would be governed by different laws. There has been a tendency in recent years to draw more sharply than formerly the line between interest and profits, to distinguish between the owner of capital. who receives interest• and the employer of capital, who receives profits. This distinction is of increasing importance in the modern world, which, with its extension of credit, permits so large a share of the vvorld', business to lie car ried on by borrowed eapital, and places oppor tunities at the disposal of energetic. and enter
prising men which Ind not exist. before. The area of discussion this outlined represents the most controverted field in economic writing. It has especially through the attacks of the socialists. whose contention is that th«listributiVe process is radically at fault• and thoroughly inequitable. It is interesting to ob serve that as the discussion of exchange gave place in A(111111 writings to that Of pro duction, so later.' in the writings of :\laltlins, Ricardo, and 'Alin, distribution beeame the lead ing clement in economic. discussion. The interest shifted somewhat from questions affecting the in •rease of the aggregate product to the eonsidera lion of the laws governing the distribution of the product.
Consult the works of Pivardo, John Stuart rairnes, 'Marshall, Jevons. \•alker, and Patten. :":14. 1'01.1TIt ECONOSIY INTER I.S r : 1'1'011 IT 01141 1:6 NT.