Wage-earners' investment funds: theory,simulation and policy

A wage-earners' investment fund raises income from taxation and uses it to acquire shares on behalf of wage-earners. The policy relevance of such a fund is discussed and a simple model developed. The model is used to simulate the development of a fund over the short-run and its effect on certain central economic variables such as the profit-rate. Simulations are used to analyse the effects of varying the key policy parameters.