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The Simple Analytics of Falling Profit Rates, Okishio's Theorem and Fixed Capital

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  • José Alberro

    (Dept. of Economics Univ. of Illinois at Chicago Circle Box 4348 Chicago)

  • Joseph Persky

    (Dept. of Economics Univ. of Illinois at Chicago Circle Box 4348 Chicago)

Abstract

This paper uses a simple Ricardian model to analyze the compara tive static properties of the profit rate, when Okishio-profitable technological innovations are introduced. We use a constructive-geometrical proof of Okishio's Theorem and extend it to a world including fixed capital equipment of equal efficiencies over its lifetime.

Suggested Citation

  • José Alberro & Joseph Persky, 1979. "The Simple Analytics of Falling Profit Rates, Okishio's Theorem and Fixed Capital," Review of Radical Political Economics, Union for Radical Political Economics, vol. 11(3), pages 37-41, October.
    • Handle: RePEc:sae:reorpe:v:11:y:1979:i:3:p:37-41
    DOI: 10.1177/048661347901100305
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    References listed on IDEAS

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    1. Shaikh, Anwar, 1978. "Political Economy and Capitalism: Notes on Dobb's Theory of Crisis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 2(2), pages 233-251, June.
    2. Christiansen, Jens, 1976. "Marx and the Falling Rate of Profit," American Economic Review, American Economic Association, vol. 66(2), pages 20-26, May.
    3. Raford Boddy & James Crotty, 1975. "Class Conflict and Macro-Policy: The Political Business Cycle," Review of Radical Political Economics, Union for Radical Political Economics, vol. 7(1), pages 1-19, April.
    4. Roemer, John E., 1977. "Technical change and the "tendency of the rate of profit to fall"," Journal of Economic Theory, Elsevier, vol. 16(2), pages 403-424, December.
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    Cited by:

    1. Freeman, Alan, 1994. "Value and the foundation of Economic Dynamics," MPRA Paper 1206, University Library of Munich, Germany, revised 16 Mar 1994.
    2. M Webber & D Rigby, 1999. "Accumulation and the Rate of Profit: Regulating the Macroeconomy," Environment and Planning A, , vol. 31(1), pages 141-164, January.
    3. Freeman, Alan, 1994. "Reappraising the classics - the case for a dynamic reformulation of the labour theory of value," MPRA Paper 1205, University Library of Munich, Germany.
    4. D L Rigby, 1990. "Technical Change and the Rate of Profit: An Obituary for Okishio's Theorem," Environment and Planning A, , vol. 22(8), pages 1039-1050, August.

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