IDEAS home Printed from https://ideas.repec.org/p/mcd/mcddps/2011_18.html
   My bibliography  Save this paper

Revisiting Adam Smith’s Theory of the Falling Rate of Profit

Author

Abstract

Smith’s theory of the falling rate of profit has been usually interpreted as a result of the intensification of competition in the markets of goods and services of the factors of production. This aspect of Adam Smith had been initially posed by Ricardo and subsequently was widely adopted by the major economists of the past as well as from the majority of the modern historians of economic thought. In our view, Smith’s analysis of the falling tendency in the rate of profit is by far more complex than usually presented and that the intensification of competition is the result of the falling rate of profit rather than its cause which is the capitalization of the production process.

Suggested Citation

  • Lefteris Tsoulfidis & Dimitris Paitaridis, 2011. "Revisiting Adam Smith’s Theory of the Falling Rate of Profit," Discussion Paper Series 2011_18, Department of Economics, University of Macedonia, revised Nov 2011.
  • Handle: RePEc:mcd:mcddps:2011_18
    as

    Download full text from publisher

    File URL: http://aphrodite.uom.gr/econwp/pdf/dp182011.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Blaug,Mark, 1997. "Economic Theory in Retrospect," Cambridge Books, Cambridge University Press, number 9780521577014, May.
    2. 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.
    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. repec:psl:pslqrr:2017:21 is not listed on IDEAS

    More about this item

    Keywords

    Rate of Profit; competition; mechanization; Adam Smith; Stationary State.;

    JEL classification:

    • B10 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - General
    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Wicksellian)
    • B14 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Socialist; Marxist
    • B16 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Quantitative and Mathematical
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:mcd:mcddps:2011_18. 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: (Theodore Panagiotidis). General contact details of provider: http://www.uom.gr/index.php?tmima=3 .

    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 CitEc recognized a reference but did not link an item in RePEc 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 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.