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Determinants of the Average Profit Rate and the Trajectory of Capitalist Economies

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  • Dave Zachariah

Abstract

The paper investigates the determinants of the average profit rate using the framework outlined by Farjoun and Machover (1983) and developed in Cottrell and Cockshott (2006). A dynamic equilibrium rate is derived that predicts the trend of the average profit rate. Long-run trends in the trajectory of capitalist economies are considered using empirical data from several countries.

Suggested Citation

  • Dave Zachariah, 2009. "Determinants of the Average Profit Rate and the Trajectory of Capitalist Economies," Bulletin of Political Economy, Bulletin of Political Economy, vol. 3(1), pages 13-36, June.
    • Handle: RePEc:awu:journl:v:3:y:2009:i:1:p:13-36
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