IDEAS home Printed from
   My bibliography  Save this paper

Henryk Grossmann’s Falling Rate of Profit theory of crisis: a presentation and a reply to old and new critics


  • Mavroudeas, Stavros
  • Ioannides, Alexis


Henryk Grossmann was the first Marxist economist that proposed a theory of crisis based on the Marxian law of the falling rate of profit due to the increasing organic composition of capital. This view, while initially disappointingly minotirarian, has become very popular nowadays within Marxist Political Economy. At the same time Grossmann’s theory has been severely criticised by many economists (e.g. P.Sweezy, Howard & King etc.). In this essay, first, Grossmannn’s theory is presented. Then it is reformulated so as to be comparable to the Harrod-Domar tradition of growth models. Third, older and newer critiques are being reviewed critically. Finally, it concludes by arguing that Grossmann’s theory – despite certain deficiencies to a large extent justified by its pioneering character- has a valid methodological and analytical basis. As such it is a true founder of modern theories of the falling rate of profit theory of crisis.

Suggested Citation

  • Mavroudeas, Stavros & Ioannides, Alexis, 2006. "Henryk Grossmann’s Falling Rate of Profit theory of crisis: a presentation and a reply to old and new critics," MPRA Paper 19733, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:19733

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    1. Shaikh, Anwar, 1978. "Political Economy and Capitalism: Notes on Dobb's Theory of Crisis," Cambridge Journal of Economics, Oxford University Press, vol. 2(2), pages 233-251, June.
    Full references (including those not matched with items on IDEAS)

    More about this item


    economic crisis; growth; Marxism; Grossman;

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian


    Access and download statistics


    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:pra:mprapa:19733. 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: (Joachim Winter) or (Rebekah McClure). General contact details of provider: .

    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.