Editing Income distribution (section)

==== Neoclassical theory of distribution ====
According to this theory, the distribution of national income is determined by factor prices, the payment to each factor of production (wage for labor, rent for land, interest for capital, profit for entrepreneurship) which themselves are derived from the equilibrium of supply and demand in that factor's market, and finally, are equal to the marginal productivity of the factors of production. A change in the quantity of any one of the factors will affect the marginal production, supply and demand of factors and eventually alter the income distribution from firms to households within the economy.<ref>{{Cite book |last=MANKIW |first=N. GREGORY |title=MACROECONOMICS |date=22 May 2015 |isbn=978-1-4641-8289-1 |edition=9th |pages=47–80|publisher=Macmillan Learning }}</ref>