Quantitative Understanding of the Trickle-Down Hypothesis (Amazon Kindle)
We obtained quantitative result that is the exact opposite of the trickle-down hypothesis.
For studying trickle-down, we performed an estimation of the circulation of the money flow only between business and households. Business is divided into small, middle, and large companies, and households are divided into low-, middle-, and high-income earners. In this estimation, we obtained numbers of small and middle companies that a high-income earner needs for trickle-down. Free parameters of our estimation are the income ratio and the number ratio of the low-, middle-, and high-income earners in a large company.
