Henryk Grossmann’s Falling Rate of Profit theory of crisis: a presentation and a reply to old and new critics
AbstractHenryk Grossmann was the first Marxist economist that proposed a theory of crisis based on the Marxian law of the falling rate of profit due to the increasing organic composition of capital. This view, while initially disappointingly minotirarian, has become very popular nowadays within Marxist Political Economy. At the same time Grossmann’s theory has been severely criticised by many economists (e.g. P.Sweezy, Howard & King etc.). In this essay, first, Grossmannn’s theory is presented. Then it is reformulated so as to be comparable to the Harrod-Domar tradition of growth models. Third, older and newer critiques are being reviewed critically. Finally, it concludes by arguing that Grossmann’s theory – despite certain deficiencies to a large extent justified by its pioneering character- has a valid methodological and analytical basis. As such it is a true founder of modern theories of the falling rate of profit theory of crisis.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 19733.
Date of creation: 2006
Date of revision:
economic crisis; growth; Marxism; Grossman;
Find related papers by JEL classification:
- B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
- B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shaikh, Anwar, 1978. "Political Economy and Capitalism: Notes on Dobb's Theory of Crisis," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 2(2), pages 233-51, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
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.