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The Ricardian rent theory: an overview

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  • Bidard, Christian

    (University Paris Ouest)

Abstract

We propose to re-read Ricardo's theory of rent to which, we claim, the post-Sraffian literature is methodologically unfaithful. 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 to Ricardo opens the door to all complications of capital theory, 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

  • Bidard, Christian, 2014. "The Ricardian rent theory: an overview," Centro Sraffa Working Papers CSWP8, Centro di Ricerche e Documentazione "Piero Sraffa".
    • Handle: RePEc:ris:sraffa:0008
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    References listed on IDEAS

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    1. 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.
    2. Christian Bidard, 2010. "The dynamics of intensive cultivation," Cambridge Journal of Economics, Oxford University Press, vol. 34(6), pages 1097-1104.
    3. Steedman, Ian, 1982. "Joint Production and the Wage-Rent Frontier," Economic Journal, Royal Economic Society, vol. 92(366), pages 377-385, June.
    4. Christian Bidard, 2004. "Prices, Reproduction, Scarcity," Post-Print hal-03094334, HAL.
    5. Harcourt,G. C., 1972. "Some Cambridge Controversies in the Theory of Capital," Cambridge Books, Cambridge University Press, number 9780521096720, January.
    6. Christian Bidard, 2011. "The Ricardian Dynamics Revisited," EconomiX Working Papers 2011-24, University of Paris Nanterre, EconomiX.
    7. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676, October.
    8. Christian Bidard, 2014. "Intensive rent and value in Ricardo," Post-Print hal-01449946, HAL.
    9. Bidard,Christian, 2011. "Prices, Reproduction, Scarcity," Cambridge Books, Cambridge University Press, number 9780521180191, January.
    10. Christian Bidard & Guido Erreygers, 1998. "The number and type of long-term equilibria," Journal of Economics, Springer, vol. 67(2), pages 181-205, June.
    11. Saverio M. Fratini, 2012. "A Remark on Intensive Differential Rent and the Labour Theory of Value in Ricardo," Bulletin of Political Economy, Bulletin of Political Economy, vol. 6(2), pages 133-147, December.
    12. C. E. Lemke, 1965. "Bimatrix Equilibrium Points and Mathematical Programming," Management Science, INFORMS, vol. 11(7), pages 681-689, May.
    13. Salvadori, Neri, 1986. "Land and Choice of Techniques within the Sraffa Framework," Australian Economic Papers, Wiley Blackwell, vol. 25(46), pages 94-105, June.
    14. Montet, C, 1979. "Reswitching and Primary Input Use: A Comment," Economic Journal, Royal Economic Society, vol. 89(355), pages 642-647, September.
    15. Kurz, Heinz D, 1978. "Rent Theory in a Multisectoral Model," Oxford Economic Papers, Oxford University Press, vol. 30(1), pages 16-37, March.
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    Cited by:

    1. Yoann Verger, 2015. "Sraffa and the environment," Working Papers hal-01186009, HAL.
    2. Christian Bidard, 2015. "An oddity property for cross-dual games," Working Papers hal-04141427, HAL.
    3. Christian Bidard, 2015. "An oddity property for cross-dual games," EconomiX Working Papers 2015-4, University of Paris Nanterre, EconomiX.

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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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