Advanced Search
MyIDEAS: Login to save this article or follow this journal

Finance Vs Ownership: Mill'S Two Abstinences And The Link Between Profit And Interest

Contents:

Author Info

  • Michael J. Gootzeit
Registered author(s):

    Abstract

    The difference between profit and interest was never clarified by the early classicalists, but J. S. Mill provided a partial answer: It was based on his two concepts of "abstinence". Interest was the reward for anonymous or "contract" personal saving without ownership--savings' financial function--while profit was the reward for personal saving to increase ownership. Although he focused on abstinence in the Seniorian tradition, Mill emphasized personal, not business, saving, as did Senior. Furthermore, Mill's "abstinence theory of interest and profit" has never been taken seriously as a complete theory, as has Senior's. This was because of his "loanable" funds' theory of interest, which was taken up by later writers. It is shown that this theory predicted that net profits and interest would vary indirectly. It used the net profit to help determine the interest rate, so it perpetuated the confusion between these two rates. Copyright 2006, Oxford University Press.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by Oxford University Press in its journal Contributions to Political Economy.

    Volume (Year): 25 (2006)
    Issue (Month): 1 (August)
    Pages: 49-61

    as in new window
    Handle: RePEc:oup:copoec:v:25:y:2006:i:1:p:49-61

    Contact details of provider:
    Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
    Fax: 01865 267 985
    Email:
    Web page: http://www.cpe.oupjournals.org/

    Order Information:
    Web: http://www.oup.co.uk/journals

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:oup:copoec:v:25:y:2006:i:1:p:49-61. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.