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'Business Cycles,' Turnover and the Rate of Profit: An Empirical Test of Marxian Crisis Theory

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  • Rudy Fichtenbaum

Abstract

The fragmentary nature of Karl Marx's discussion on crisis has led to a long-standing debate regarding causal factors. This paper is a first attempt to show that turnover plays an important role in explaining cyclical movements in the rate of profit. The results of this study show the importance of including a measure of turnover in the rate of profit and lend support to the view that crises result both from a rising organic composition of capital and realization problems.

Suggested Citation

  • Rudy Fichtenbaum, 1988. "'Business Cycles,' Turnover and the Rate of Profit: An Empirical Test of Marxian Crisis Theory," Eastern Economic Journal, Eastern Economic Association, vol. 14(3), pages 221-228, Jul-Sep.
    • Handle: RePEc:eej:eeconj:v:14:y:1988:i:3:p:221-228
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume14/V14N3P221_228.pdf
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    References listed on IDEAS

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    1. Shaikh, Anwar, 1978. "Political Economy and Capitalism: Notes on Dobb's Theory of Crisis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 2(2), pages 233-251, June.
    2. Weisskopf, Thomas E, 1979. "Marxian Crisis Theory and the Rate of Profit in the Postwar U.S. Economy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 3(4), pages 341-378, December.
    3. James N. Devine, 1987. "Cyclical Over-Investment and Crisis in a Labor-Scarce Economy," Eastern Economic Journal, Eastern Economic Association, vol. 13(3), pages 271-280, Jul-Sep.
    4. Alain Lipietz, 1986. "Behind the Crisis: The Exhaustion of a Regime of Accumulation. A "regulation school" perspective on some French empirical works," Review of Radical Political Economics, Union for Radical Political Economics, vol. 18(1-2), pages 13-32, March.
    5. Raford Boddy & James Crotty, 1975. "Class Conflict and Macro-Policy: The Political Business Cycle," Review of Radical Political Economics, Union for Radical Political Economics, vol. 7(1), pages 1-19, April.
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    Cited by:

    1. Miguel D. Ramirez, 2019. "Credit, Indebtedness and Speculation in Marx's Political Economy," Economic Thought, World Economics Association, vol. 8, pages 46-62, December.
    2. Vaona, Andrea, 2011. "Profit rate dynamics, income distribution, structural and technical change in Denmark, Finland and Italy," Structural Change and Economic Dynamics, Elsevier, vol. 22(3), pages 247-268, September.
    3. Maito, Esteban Ezequiel, 2014. "Income distribution, turnover speed and profit rate in Japan, Chile, Netherlands and United States," MPRA Paper 59283, University Library of Munich, Germany.
    4. Passarella, Marco & Baron, Hervé, 2013. "Capital's Pons Asinorum: the Rate of Turnover in Karl Marx's Analysis of Capitalist Valorisation," MPRA Paper 48306, University Library of Munich, Germany, revised 14 Jul 2013.
    5. Maito, Esteban Ezequiel, 2014. "Auge y estancamiento de Japón (1955-2008). Una explicación marxista [Rise and standstill of Japan (1955-2008). A Marxist explanation]," MPRA Paper 53102, University Library of Munich, Germany.
    6. Emiliano López & Facundo Barrera Insua, 2019. "The Specific Conditions of the Valorization of Capital in a Dependent Nation: The Case of Argentina (2002–2014)," Review of Radical Political Economics, Union for Radical Political Economics, vol. 51(1), pages 75-94, March.
    7. Stavros Mavroudeas, 2019. "Comment on Miguel Ramirez's paper, 'Credit, Indebtedness and Speculation in Marx's Political Economy'," Economic Thought, World Economics Association, vol. 8, pages 63-68, December.

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