tial economic consequences of greater equality in capital wealth distribution by means of specifying and numerically implementing a small-scale general equilibrium model. The principal innovation of the model is its inclusion as a household decision variable of capital management effort. Capital management effort represents any and all forms of active human effort intended to increase the rate of return on capital wealth. Capital management effort complements labor in the aggregate production function as a primary factor of production. The model also incorporates household saving via its effect on effective financial assets, a direct argument in the household utility function. Thus, the model incorporates the effects of dual earners on household saving. The study found that household improved performance continues until the point of perfect equality in capital wealth is reached. The indicated social optimality of complete capital wealth equality holds up regardless of whether or not capital property income can mostly
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