Still more on why we should bury the Marginal Productivity Theory of the Price of Capital: A Supplementary Note
AbstractThe purpose of this note is to supplement the authorâ€™s earlier remarks on the unsatisfactory nature of the neoclassical account of how the return on capital is determined. (See Strathclyde Discussion Paper 12-03: â€œThe Marginal Productivity Theory of the Price of Capital: An Historical Perspective on the Origins of the Codswallopâ€). The point is made via a simple illustration that certain matters which are problematical in neoclassical terms are perfectly straightforward when viewed from a classical perspective. Basically, the marginalist model of the nature of an economic system is not fit for purpose in that it fails to comprehend the essential features of a surplus-producing economic system as distinct from one merely of exchange.
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Bibliographic InfoPaper provided by University of Strathclyde Business School, Department of Economics in its series Working Papers with number 1215.
Length: 12 pages
Date of creation: Oct 2012
Date of revision:
Publication status: Published
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More information through EDIRC
marginal productivity theory of distribution; reswitching;
Find related papers by JEL classification:
- B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Stockholm School)
- B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-26 (All new papers)
- NEP-HIS-2013-01-26 (Business, Economic & Financial History)
- NEP-HME-2013-01-26 (Heterodox Microeconomics)
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.:
- Grieve, Roy, 2012. "The Marginal Productivity Theory Of The Price Of Capital: An Historical Perspective On The Origins Of The Codswallop," SIRE Discussion Papers 2012-05, Scottish Institute for Research in Economics (SIRE).
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