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Towards a revision of the theory of capital

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  • Cavalieri, Duccio

Abstract

This is a proposal to restate the theory of capital along critical Marxian lines aimed at providing a better integration of the theory of capital with the theory of money and finance. The time value of money must be properly accounted for. An analytical method is proposed to accomplish this task. The fundamental Marxian problem of the origin of profit is treated with reference to a specific price index, the monetary expression of labour value (MEV), which accounts for both explicit and implicit cost components, including the financial cost of capital. MEV should not be confused with MELT, the ‘New Interpretation’ money expression of living labour time, which does not consider the opportunity-cost of capital and, following the erroneous net value equality, focuses on the money value of the living labour time commanded by commodities at a given wage rate, rather than on the money value of total abstract labour time embodied in commodities, inclusive of both living and past labour.

Suggested Citation

  • Cavalieri, Duccio, 2013. "Towards a revision of the theory of capital," MPRA Paper 47351, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:47351
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    File URL: https://mpra.ub.uni-muenchen.de/47351/3/MPRA_paper_47351.pdf
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    References listed on IDEAS

    as
    1. Chirinko, Robert S, 1993. "Business Fixed Investment Spending: Modeling Strategies, Empirical Results, and Policy Implications," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1875-1911, December.
    2. Keen, Steve, 1993. "The Misinterpretation of Marx's Theory of Value," Journal of the History of Economic Thought, Cambridge University Press, vol. 15(02), pages 282-300, September.
    3. Robert S. Chirinko, 1992. "Business Fixed Investment Spending: A Critical survey of Modeling Strategies, Empirical Results, and Policy Implications," Working Papers 9213, Harris School of Public Policy Studies, University of Chicago.
    4. Duccio Cavalieri, 2009. "Sull'inseparabilità delle strutture sintattiche nell'analisi classica del valore e della distribuzione," STUDI ECONOMICI, FrancoAngeli Editore, vol. 0(97), pages 5-46.
    5. Bliss, C. J., 1975. "Capital Theory and the Distribution of Income," Elsevier Monographs, Elsevier, edition 1, number 9780720436044 edited by Bliss, C. J..
    6. Harcourt,G. C., 1972. "Some Cambridge Controversies in the Theory of Capital," Cambridge Books, Cambridge University Press, number 9780521096720, March.
    7. Joan Robinson, 1970. "Capital Theory Up to Date," Canadian Journal of Economics, Canadian Economics Association, vol. 3(2), pages 309-317, May.
    8. Armitage,Seth, 2005. "The Cost of Capital," Cambridge Books, Cambridge University Press, number 9780521801959, March.
    9. Cavalieri, Duccio, 2013. "A theory of capital as value in progress," MPRA Paper 47197, University Library of Munich, Germany.
    10. Burmeister,Edwin, 1980. "Capital Theory and Dynamics," Cambridge Books, Cambridge University Press, number 9780521297035, March.
    11. P. Garegnani, 1970. "Heterogeneous Capital, the Production Function and the Theory of Distribution," Review of Economic Studies, Oxford University Press, vol. 37(3), pages 407-436.
    12. Freeman, Alan & Kliman, Andrew, 2008. "Simultaneous Valuation vs. the Exploitation Theory of Profit: A summing up," MPRA Paper 6891, University Library of Munich, Germany.
    13. Armitage,Seth, 2005. "The Cost of Capital," Cambridge Books, Cambridge University Press, number 9780521000444, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Value; capital; labour; profit; Marx; neo-Marxism; accounting; MEV; MELT;

    JEL classification:

    • 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)
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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