IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-11516-7_2.html
   My bibliography  Save this book chapter

Increasing Employment, Diminishing Returns, Relative Shares and Ricardo

In: Inflation, Open Economies and Resources

Author

Listed:
  • Paul Davidson

Abstract

In their note, ‘Increasing Employment, Diminishing Returns, and Relative Shares,’1 Messrs Horlacher and Smolensky accept my conclusion that changes in the rent share in the Ricardian system depend on a comparison of the rate of change of the marginal product in relation to the rate of change of the average product of labour. They then proceed to suggest some perverse total product functions which are characterized as having, within a given range of inputs, rising M/A ratios with diminishing returns. They indicate, therefore, that the fate of the rent share is even less determinate than I suggested in my previous note.2 Their comments, while having mathematical validity, are, I believe, not applicable to either the Ricardian system or the real world.

Suggested Citation

  • Paul Davidson, 1991. "Increasing Employment, Diminishing Returns, Relative Shares and Ricardo," Palgrave Macmillan Books, in: Louise Davidson (ed.), Inflation, Open Economies and Resources, chapter 2, pages 11-13, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-11516-7_2
    DOI: 10.1007/978-1-349-11516-7_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-11516-7_2. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.