ABSTRACT
One of the most basic duties of economists is exploring how to allocate among production factors the goods and services, which are created through the process of production. How the production factors will share the increases of values, which they create, is a complex phenomenon with many aspects, having technical, economic, social and political dimensions. Many schools of economics from Physiocrats, which are regarded the first school in the area of economy, to Neo-classical economists have dealt with the distribution phenomena. However, the normative nature of the concept of distribution has impeded the development of a universal and reasonable theory of distribution which is agreed upon by all. A general consensus on what criteria to use in decreasing income differences and in the fair distribution of income has not been reached. Therefore the subject of distribution is still the most debated issue as it has been in the past. In this study the views of classical and neoclassical economists are considered and the criticisms directed to them are examined
Keywords : Income distribution, labor-theory of value, utility theory of value, theory of marginal productivity, theory of opportunity cost