The Keynesian element of Kaldor's distribution theory was that ‘investment is determined independetly of current savings’. It is argued here that this propsition is true of neo‐classical economic analysis which takes any account of expectations. The Kaldorian mechanism. therefore, also operates in this class of models. This is illustrated by showing the effect in a neo‐classical model of an improvement in investment opportunities in redistributing income from low to high savers. It is argued inter alia (a) that there is no question of a need to reconcile neo‐classical and neo‐Keynesian income distribution theories(b) that the neo‐classical analysis put forward is essentiallyex postand therefore serves to isolate mechanism and makerelati