IDEAS home Printed from https://ideas.repec.org/a/sae/reorpe/v20y1988i4p1-22.html
   My bibliography  Save this article

The Two-Stage Decline in U.S. Nonfinancial Corporate Profitability, 1948-1986

Author

Listed:
  • Thomas R. Michl

    (Department of Economics, Colgate University, Hamilton, NY.)

Abstract

The decline in the rate of return on nonfinancial corporate capital from 1948-1986 can be usefully divided into two distinct periods. From 1948-1972, a decline in the profit share accounts for most of the decline in the profit rate. From 1972-86, the profit share rose, and a decline in capital productivity accounts for the continued decline in the profit rate. Regression analysis of the trend structure and a decomposition of the factors accounting for the profit rate are used to support this thesis.

Suggested Citation

  • Thomas R. Michl, 1988. "The Two-Stage Decline in U.S. Nonfinancial Corporate Profitability, 1948-1986," Review of Radical Political Economics, Union for Radical Political Economics, vol. 20(4), pages 1-22, December.
  • Handle: RePEc:sae:reorpe:v:20:y:1988:i:4:p:1-22
    as

    Download full text from publisher

    File URL: http://rrp.sagepub.com/content/20/4/1.abstract
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    2. Mark Blaug, 2001. "No History of Ideas, Please, We're Economists," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 145-164, Winter.
    3. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-1093, Nov.-Dec..
    4. Malinowski, Bronislaw, 1921. "The Primitive Economics of the Trobriand Islanders," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 31, pages 1-16.
    5. Fontana, Magda, 2010. "Can neoclassical economics handle complexity? The fallacy of the oil spot dynamic," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 584-596, December.
    6. Anna Carabelli & Mario Cedrini, 2010. "Keynes and the Complexity of International Economic Relations in the Aftermath of World War I," Journal of Economic Issues, Taylor & Francis Journals, vol. 44(4), pages 1009-1028.
    7. Mark Blaug, 2001. "No History of Ideas, Please, We're Economists: Response," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 222-222, Fall.
    8. Davis, John B., 2013. "Economics Imperialism under the Impact of Psychology: The Case of Behavioral Development Economics," OEconomia, Editions NecPlus, vol. 2013(01), pages 119-138, March.
    9. Yves Zenou & Philippe Batifoulier & Laurent Cordonnier, 1992. "L'emprunt de la théorie économique à la tradition sociologique. Le cas du don contre-don," Revue Économique, Programme National Persée, vol. 43(5), pages 917-946.
    10. Philippe Fontaine, 2007. "From Philanthropy to Altruism: Incorporating Unselfish Behavior into Economics, 1961-1975," History of Political Economy, Duke University Press, vol. 39(1), pages 1-46, Spring.
    11. Anna M. Carabelli & Mario A. Cedrini, 2010. "Global imbalances, monetary disorder, and shrinking policy space: Keynes's legacy for our troubled world," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 7(2), pages 303-323.
    12. Paul Grauwe, 2011. "The eurozone as a morality play," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 46(5), pages 230-231, October.
    13. Anna M. Carabelli & Mario A. Cedrini, 2011. " Chapter 18 of the General Theory “Further Analysed”: The Theory of Economics as A Method," Working Papers 128, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
    14. Cassata, Francesco & Marchionatti, Roberto, 2011. "A transdisciplinary perspective on economic complexity. Marshall's problem revisited," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 122-136.
    15. John B. Davis, 2008. "The turn in recent economics and return of orthodoxy," Cambridge Journal of Economics, Oxford University Press, vol. 32(3), pages 349-366, May.
    16. Philippe Fontaine, 2012. "Beyond Altruism? Economics and the Minimization of Unselfish Behavior, 1975-93," History of Political Economy, Duke University Press, vol. 44(2), pages 195-233, Summer.
    17. Akerlof, George A, 1984. "Gift Exchange and Efficiency-Wage Theory: Four Views," American Economic Review, American Economic Association, vol. 74(2), pages 79-83, May.
    18. Marchionatti, Roberto, 2012. "The economists and the primitive societies," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 529-540.
    19. Posner, Richard A, 1980. "A Theory of Primitive Society, with Special Reference to Law," Journal of Law and Economics, University of Chicago Press, vol. 23(1), pages 1-53, April.
    20. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, Oxford University Press, vol. 97(4), pages 543-569.
    21. Marchionatti Roberto, 2002. "Dealing with complexity Marshall and Keynes on the nature of economic thinking," CESMEP Working Papers 200201, University of Turin.
    22. G. Liberopoulos & B. Tan & S.B. Gershwin & C.T. Papadopoulos & J. MacGregor Smith, 2004. "Preface," Annals of Operations Research, Springer, vol. 125(1), pages 17-19, January.
    23. Roberto Marchionatti, 2004. "What don't economists know now that Marshall knew a century ago? A note on Marshall's "sophisticated informality"," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 26(3), pages 441-460.
    24. David Vines, 2003. "John maynard keynes 1937-1946: the creation of international macroeconomics," Economic Journal, Royal Economic Society, vol. 113(488), pages 338-361, June.
    25. Edward P. Lazear, 2000. "Economic Imperialism," The Quarterly Journal of Economics, Oxford University Press, vol. 115(1), pages 99-146.
    26. G. Liberopoulos & B. Tan & S.B. Gershwin & C.T. Papadopoulos & J. MacGregor Smith, 2004. "Preface," Annals of Operations Research, Springer, vol. 126(1), pages 17-19, February.
    27. Marchionatti, Roberto & Gambino, Enrico, 1997. "Pareto and Political Economy as a Science: Methodological Revolution and Analytical Advances in Economic Theory in the 1890s," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1322-1348, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Deepankar Basu & Ramaa Vasudevan, 2013. "Technology, distribution and the rate of profit in the US economy: understanding the current crisis," Cambridge Journal of Economics, Oxford University Press, vol. 37(1), pages 57-89.
    2. Basu, Deepankar & Das, Debarshi, 2015. "Profitability in India’s Organized Manufacturing Sector: The Role of Technology, Distribution, and Demand," UMASS Amherst Economics Working Papers 2015-04, University of Massachusetts Amherst, Department of Economics.
    3. Basu, Deepankar, 2015. "A Selective Review of Recent Quantitative Empirical Research in Marxist Political Economy," UMASS Amherst Economics Working Papers 2015-05, University of Massachusetts Amherst, Department of Economics.
    4. Edward N. Wolff, 2000. "What's Behind the Recent Rise in Profitablity?," Economics Working Paper Archive wp_297, Levy Economics Institute.

    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:sae:reorpe:v:20:y:1988:i:4:p:1-22. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: http://www.urpe.org/ .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.