| Sumario: | This article suggests elements of a complete theory of distributive shares by deriving the different concepts of the elasticity of substitution required in different contexts. The first section briefly discusses the model of production and distribution in the multifactor case. The second section analyzes the role of the Samuelson elasticity and the partial elasticities. The third section discusses the direct and shadow elasticities. In Addition, other elasticities are introduces to analyze the variety of problems one encounters in real life. In the presence of multiple factors interesting questions can be asked about the effects on the various ratios of factor shares. Thus, supposing that there is an increase in the ratio of black over white laborers, how will this affect the ratio of factor shares between these two classes of laborers--black, white, and brown. Then, supposing that a firm decides to increase the use of brown laborers, how will this affect the relative income position of one class of laborers against other classes of laborers? Extending the argument in this manner, one may in general ask about the effect on the ratio of factor shares between two groups of factor inputs.
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