I'll try to state my question clearly:
For a given a "wealth" allocation Wt = (w1, w2, w3, ... ) for individuals I = (i1, i2, i3, ... ).
And a distribution of D= (w1/|W|, w2/|W|, w3/|W|, ... ), that is, as a percentage of the total.
Where Wt is Pareto Efficient at a given time frame t , and W(t+1) is Pareto Efficient at t+1 .
When there is growth such that |W(t+1)| > |Wt|
If so, why? If not, how do you allocate say, capital, whose value is intrinsically linked to growth?
I understand many of my assumptions may be plain wrong or badly stated, I am still an undergrad. Sorry about that. And thanks in advance.
For each element w of Wt = (w1, w2, w3, ... ),
w= P * B
Where P is the price vector of a commodity bundle B.
I hope that my representation of growth as an increase in the magnitude of the W vector is correct. This is what has been bugging me the most. It's safe to assume that growth causes an increase in |W|, right?