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The historical transience of capital: the downward trend in the rate of profit since XIX century

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  • Maito, Esteban Ezequiel

Abstract

This paper presents estimates of the rate of profit on fourteen countries in the long run. The performance shows a clear downward trend, although there are periods of partial recovery in both core and peripheral countries. The behavior of the profit rate confirms the predictions made by Marx, about the historical trend of the mode of production. Finally, an estimate of the global rate of profit for the last six decades is done, also highlighting the particular role of China in systemic profitability.

Suggested Citation

  • Maito, Esteban Ezequiel, 2014. "The historical transience of capital: the downward trend in the rate of profit since XIX century," MPRA Paper 55894, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:55894
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    7. Freeman, Alan, 2009. "What makes the US Profit Rate Fall?," MPRA Paper 14147, University Library of Munich, Germany.
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    Cited by:

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    2. Gheorghe Savoiu & Vasile Dinu, 2015. "Economic paradoxism and meson economics," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(39), pages 776-776, May.
    3. José A. Tenreiro Machado & Maria Eugénia Mata & António M. Lopes, 2020. "Fractional Dynamics and Pseudo-Phase Space of Country Economic Processes," Mathematics, MDPI, vol. 8(1), pages 1-17, January.
    4. Samaha, Amal, 2020. "Innovators, Bullshitters or Aristocrats: Towards an Explanation of Unproductive Work," MPRA Paper 107169, University Library of Munich, Germany.
    5. Maito, Esteban Ezequiel, 2014. "And yet it moves (down)," MPRA Paper 58007, University Library of Munich, Germany.
    6. Trofimov, Ivan D., 2018. "The secular decline in profit rates: time series analysis of a classical hypothesis," MPRA Paper 88248, University Library of Munich, Germany.

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    More about this item

    Keywords

    rate of profit - Marx - mode of production – core/periphery – world rate of profit;

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • N0 - Economic History - - General
    • P10 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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