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Is Marx’S Absolute Rent Due To A Monopoly Price?

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  • Saverio M. Fratini

Abstract

Absolute rent, in Marx’s view, has an upper limit represented by the difference between the value and the price of production of agricultural commodities. The actual relevance of this limit was questioned by Bortkiewicz and other scholars because of the difficulties concerning the argument which Marx based it on. The lack of this upper limit prompted a number of scholars to claim that there is no difference between absolute rent and a rent paid by a monopoly price. Referring to the classical/Marxian theory of monopoly price, we shall argue that is still possible— notwithstanding the missing upper limit—to distinguish absolute rent from a rent actually due to a monopoly price. In particular, the difference between the two rests on the removability (in the case of absolute rent) or the persistency (in the case of monopoly rent) of the obstacle to the expansion of agricultural production.

Suggested Citation

  • Saverio M. Fratini, 2017. "Is Marx’S Absolute Rent Due To A Monopoly Price?," Departmental Working Papers of Economics - University 'Roma Tre' 0229, Department of Economics - University Roma Tre.
  • Handle: RePEc:rtr:wpaper:0229
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    File URL: http://dipeco.uniroma3.it/db/docs/WP%20229.pdf
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    References listed on IDEAS

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    1. Negishi,Takashi, 1985. "Economic Theories in a Non-Walrasian Tradition," Cambridge Books, Cambridge University Press, number 9780521259675.
    2. Miguel D. Ramirez, 2009. "Marx's Theory of Ground Rent: A Critical Assessment," Contributions to Political Economy, Oxford University Press, vol. 28(1), pages 71-91.
    3. Saverio M. Fratini, 2016. "Rent as a share of product and Sraffa’s price equations," Cambridge Journal of Economics, Oxford University Press, vol. 40(2), pages 599-613.
    4. Howard, M. C. & King, J. E., 1992. "Marx, Jones, Rodbertus and the Theory of Absolute Rent," Journal of the History of Economic Thought, Cambridge University Press, vol. 14(1), pages 70-83, April.
    5. Garegnani, Pierangelo, 1984. "Value and Distribution in the Classical Economists and Marx," Oxford Economic Papers, Oxford University Press, vol. 36(2), pages 291-325, June.
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    Cited by:

    1. Di Bucchianico, Stefano, 2019. "The Impact of Financialization on the Rate of Profit: A Discussion," Centro Sraffa Working Papers CSWP36, Centro di Ricerche e Documentazione "Piero Sraffa".

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    More about this item

    Keywords

    Marx; Bortkiewicz; absolute rent; monopoly price; effectual demand;
    All these keywords.

    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • B14 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Socialist; Marxist
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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