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The Ricardian rent theory two centuries after

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  • Christian Bidard

Abstract

We propose to re-read Ricardo's theory of rent and its modern versions. Ricardo's dynamic approach follows the transformations of a long-term equilibrium with demand. Sraffa adopted the same framework while substituting a value criterion for a physical criterion to determine the incoming marginal method, but he did not state the law of succession of methods explicitly. This prevented him to realize that his critique opens the door to all complications of capital the ory, with the consequence that the Ricardian dynamics fail when a divergence appears between profitability and productivity. Contemporary studies have cast doubts on the validity of some of Ricardo's and Sraffa's over-optimistic conclusions, but the abandonment of the dynamic approach does not allow them to explain the ultimate reason of the phenomena they have pointed at. Ricardo's method has been recently rediscovered by mathematicians.

Suggested Citation

  • Christian Bidard, 2014. "The Ricardian rent theory two centuries after," EconomiX Working Papers 2014-54, University of Paris Nanterre, EconomiX.
  • Handle: RePEc:drm:wpaper:2014-54
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    References listed on IDEAS

    as
    1. Christian Bidard, 2004. "Prices, Reproduction, Scarcity," Post-Print hal-03094334, HAL.
    2. Erreygers, Guido, 1995. "On the Uniqueness of Square Cost-Minimizing Techniques," The Manchester School of Economic & Social Studies, University of Manchester, vol. 63(2), pages 145-166, June.
    3. Christian Bidard & Guido Erreygers, 1998. "The number and type of long-term equilibria," Journal of Economics, Springer, vol. 67(2), pages 181-205, June.
    4. C. E. Lemke, 1965. "Bimatrix Equilibrium Points and Mathematical Programming," Management Science, INFORMS, vol. 11(7), pages 681-689, May.
    5. Dierker, Egbert, 1972. "Two Remarks on the Number of Equilibria of an Economy," Econometrica, Econometric Society, vol. 40(5), pages 951-953, September.
    6. Christian Bidard, 2010. "The dynamics of intensive cultivation," Cambridge Journal of Economics, Oxford University Press, vol. 34(6), pages 1097-1104.
    7. Steedman, Ian, 1982. "Joint Production and the Wage-Rent Frontier," Economic Journal, Royal Economic Society, vol. 92(366), pages 377-385, June.
    8. Harcourt,G. C., 1972. "Some Cambridge Controversies in the Theory of Capital," Cambridge Books, Cambridge University Press, number 9780521096720, January.
    9. Christian Bidard, 2011. "The Ricardian Dynamics Revisited," EconomiX Working Papers 2011-24, University of Paris Nanterre, EconomiX.
    10. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676, October.
    11. Bidard,Christian, 2011. "Prices, Reproduction, Scarcity," Cambridge Books, Cambridge University Press, number 9780521180191, January.
    12. Salvadori, Neri, 1986. "Land and Choice of Techniques within the Sraffa Framework," Australian Economic Papers, Wiley Blackwell, vol. 25(46), pages 94-105, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Classical theory; land; rent; Ricardo; Sraffa.;
    All these keywords.

    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution

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