What is the difference between functional income distribution and personal income distribution?

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There is a difference between functional income distribution and personal income distribution. Personal income distribution focuses on how income is divided among individuals in a country. It focuses on why there is a difference in the income distribution between different groups or classes of people. From this analysis, policies can be developed to deal with unequal income distribution.

Functional income distribution deals with the amount of income relative to the factors of production. The factors of production are land, labor, capital, and the entrepreneur. Functional income distribution...

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economicrimpa | Student

personal distribution of national incom means the distribution of national income among various individual in a society. It shows how inequality of income emerge in the country.

on the other hand the theory of functional distributio studies how thw various factor of prodution are rewarded for their service . It studies how price og factors such as rent of land, wages of labour, inerest on capital and profit of entreprenuer are determined. The theory of distribution is concerned with functional distribution of income which is also called theory of factor pricing.