IDEAS home Printed from https://ideas.repec.org/a/bla/scotjp/v39y1992i1p100-110.html
   My bibliography  Save this article

Adam Smith on the Falling Rate of Profit: A Reappraisal

Author

Listed:
  • Verdera, Francisco

Abstract

This article questions David Ricardo's interpretation of the causes for the rate of profit to fall in Adam Smith's Wealth of Nations and tries to show that the tendency for the rate of profit to fall does not result from competition but from an increase in the stock (or capital) in all the society. The argument goes as follows. The increased use of fixed capital raises its own maintenance (depreciation) and the cost of circulating capital. Thus, capital costs become a larger proportion of the total value produced and the amount of profits over the total capital decreases. Copyright 1992 by Scottish Economic Society.

Suggested Citation

  • Verdera, Francisco, 1992. "Adam Smith on the Falling Rate of Profit: A Reappraisal," Scottish Journal of Political Economy, Scottish Economic Society, vol. 39(1), pages 100-110, February.
    • Handle: RePEc:bla:scotjp:v:39:y:1992:i:1:p:100-110
    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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lefteris Tsoulfidis & Dimitris Paitaridis, 2012. "Revisiting Adam Smith's theory of the falling rate of profit," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(5), pages 304-313, April.

    More about this item

    Statistics

    Access and download statistics

    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:bla:scotjp:v:39:y:1992:i:1:p:100-110. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/sesssea.html .

    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.