IDEAS home Printed from https://ideas.repec.org/p/wrc/ymswp1/12.html
   My bibliography  Save this paper

The labour theory of value, risk and the rate of profit

Author

Listed:
  • Toms, Steven

Abstract

The paper extends Marx’s law of value to include the effects of risk. It shows how risk has its origins in the labour process and is transferred between labour and capital on an unequal basis and between capitals on a zero sum basis. An empirical test is then presented, which shows that the employment of labour increases risk from the point of view of the investing capitalist. The conclusion is that the employment of labour is a curate’s egg from capital’s point of view. On the one hand it is essential for the production of sustainable surplus value and therefore for competitive advantage and capital accumulation. On the other hand employment of labour renders such accumulation inherently risky and therefore commensurately more costly to the rational capitalist investor.

Suggested Citation

  • Toms, Steven, 2005. "The labour theory of value, risk and the rate of profit," The York Management School Working Papers 12, The York Management School, University of York.
  • Handle: RePEc:wrc:ymswp1:12
    as

    Download full text from publisher

    File URL: http://eprints.whiterose.ac.uk/2571/1/ymswp12toms.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jagannathan, Ravi & Wang, Zhenyu, 1996. " The Conditional CAPM and the Cross-Section of Expected Returns," Journal of Finance, American Finance Association, vol. 51(1), pages 3-53, March.
    2. Hyeng Keun Koo, 1998. "Consumption and Portfolio Selection with Labor Income: A Continuous Time Approach," Mathematical Finance, Wiley Blackwell, vol. 8(1), pages 49-65.
    3. Richard, Scott F., 1975. "Optimal consumption, portfolio and life insurance rules for an uncertain lived individual in a continuous time model," Journal of Financial Economics, Elsevier, vol. 2(2), pages 187-203, June.
    4. Joan Robinson, 1953. "The Production Function and the Theory of Capital," Review of Economic Studies, Oxford University Press, vol. 21(2), pages 81-106.
    5. Telser, Lester G, 1981. "Why There Are Organized Futures Markets," Journal of Law and Economics, University of Chicago Press, vol. 24(1), pages 1-22, April.
    6. Abowd, John M, 1989. "The Effect of Wage Bargains on the Stock Market Value of the Firm," American Economic Review, American Economic Association, vol. 79(4), pages 774-800, September.
    7. Hopper, Trevor & Armstrong, Peter, 1991. "Cost accounting, controlling labour and the rise of conglomerates," Accounting, Organizations and Society, Elsevier, vol. 16(5-6), pages 405-438.
    8. Mayer, Colin, 1997. "The City and Corporate Performance: Condemned or Exonerated?," Cambridge Journal of Economics, Oxford University Press, vol. 21(2), pages 291-302, March.
    9. Fama, Eugene F & French, Kenneth R, 1996. " Multifactor Explanations of Asset Pricing Anomalies," Journal of Finance, American Finance Association, vol. 51(1), pages 55-84, March.
    10. Lev, Baruch, 1974. "On the Association between Operating Leverage and Risk," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 9(04), pages 627-641, September.
    11. Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538-538.
    12. Svensson, Lars E. O. & Werner, Ingrid M., 1993. "Nontraded assets in incomplete markets : Pricing and portfolio choice," European Economic Review, Elsevier, vol. 37(5), pages 1149-1168, June.
    13. Mandelker, Gershon N. & Rhee, S. Ghon, 1984. "The Impact of the Degrees of Operating and Financial Leverage on Systematic Risk of Common Stock," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 19(01), pages 45-57, March.
    14. Campbell, John Y, 1996. "Understanding Risk and Return," Journal of Political Economy, University of Chicago Press, vol. 104(2), pages 298-345, April.
    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:eee:crpeac:v:30:y:2015:i:c:p:63-82 is not listed on IDEAS
    2. repec:eee:crpeac:v:21:y:2010:i:3:p:183-194 is not listed on IDEAS
    3. repec:eee:crpeac:v:21:y:2010:i:1:p:90-95 is not listed on IDEAS

    More about this item

    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:wrc:ymswp1:12. 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: (White Rose Research Online) or (The York Management School). General contact details of provider: http://edirc.repec.org/data/msyoruk.html .

    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.