THE MARXIAN PROFIT RATE: A SUGGESTED REFORMULATION

Reşat Kayalı

doi:10.14780/muiibd.582317

THE MARXIAN PROFIT RATE: A SUGGESTED REFORMULATION

Abstract

The paper attempts to reformulate Marx’s definition of the profit rate in a two-good framework so that it can be compared with the definition of the profit rate in the Ricardo-Sraffa tradition. The implications of this reformulation are investigated wıth regard to Marx’s theory of value and distribution and his theory of capitalist development. Specifically, the labor theory of value is proven where the price ratio in a two-good framework is shown to be equal to the ratio of unit labor requirements. Then, profits are discussed in terms of allocative efficiency and in the context of their appropriation by the capitalist class. Subsequently, there is a discussion of the compatibility of the law of the falling rate of profit and the law of increasing misery. The conclusion of the paper is that the suggested reformulation of the profit rate increases the number of necessary conditions that must be satisfied for some key results to hold in Marx’s theory of value and distribution and his theory of capitalist development.

Keywords

Marxian Economics,History of Economic Thought,Political Economy

References

BLAUG, M. (1997) , Economic Theory in Retrospect, Cambridge: Cambridge University Press
BORTKİEWICZ, August Von, (1949) “On the Correction of Marx’s Fundamental Theoretical Construction in the Third Volume of Capital”, Böhm-Bawerk 1949, 197-221.
BÖHM-BAWERK, Eugen von, (1949) Karl Marx and the Close of His System, New York: Augustus M. Kelley
HAHNEL, Robin, (2017), Radical Political Economy: Sraffa versus Marx, London and New York: Routledge, Taylor Francis Group
KALDOR, Nicholas (1957), “A Model of Economic Growth”, The Economic Journal, (67) (268): 591-624
KANBUR, Ravi and STIGLITZ, Joseph, (2015), “Wealth and Income Distribution: New Theories Needed for a New Era”, VOX, CEPR’s Policy Portal
LANGE, Oskar, (1964) On the Economic Theory of Socialism New York: McGraw-Hill
MARX, Karl, (1967) , Capital: A Critique of Political Economy (three volumes), New York: International Publishers

Details

Primary Language

English

Subjects

-

Journal Section

Research Article

Authors

Reşat Kayalı ^* This is me
0000-0001-7675-6697

Publication Date

July 12, 2019

Submission Date

February 1, 2019

Acceptance Date

-

Published in Issue

Year 2019 Volume: 41 Number: 1

DOI

https://doi.org/10.14780/muiibd.582317

IZ

https://izlik.org/JA72AG49GR

Cite

RIS / Bibtex

APA

Kayalı, R. (2019). THE MARXIAN PROFIT RATE: A SUGGESTED REFORMULATION. Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 41(1), 170-180. https://doi.org/10.14780/muiibd.582317

AMA

1.Kayalı R. THE MARXIAN PROFIT RATE: A SUGGESTED REFORMULATION. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2019;41(1):170-180. doi:10.14780/muiibd.582317

Chicago

Kayalı, Reşat. 2019. “THE MARXIAN PROFIT RATE: A SUGGESTED REFORMULATION”. Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi 41 (1): 170-80. https://doi.org/10.14780/muiibd.582317.

EndNote

Kayalı R (July 1, 2019) THE MARXIAN PROFIT RATE: A SUGGESTED REFORMULATION. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 41 1 170–180.

IEEE

[1]R. Kayalı, “THE MARXIAN PROFIT RATE: A SUGGESTED REFORMULATION”, Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, vol. 41, no. 1, pp. 170–180, July 2019, doi: 10.14780/muiibd.582317.

ISNAD

Kayalı, Reşat. “THE MARXIAN PROFIT RATE: A SUGGESTED REFORMULATION”. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 41/1 (July 1, 2019): 170-180. https://doi.org/10.14780/muiibd.582317.

JAMA

1.Kayalı R. THE MARXIAN PROFIT RATE: A SUGGESTED REFORMULATION. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2019;41:170–180.

MLA

Kayalı, Reşat. “THE MARXIAN PROFIT RATE: A SUGGESTED REFORMULATION”. Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi, vol. 41, no. 1, July 2019, pp. 170-8, doi:10.14780/muiibd.582317.

Vancouver

1.Reşat Kayalı. THE MARXIAN PROFIT RATE: A SUGGESTED REFORMULATION. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2019 Jul. 1;41(1):170-8. doi:10.14780/muiibd.582317