IDEAS home Printed from https://ideas.repec.org/a/sae/reorpe/v17y1985i1-2p103-128.html
   My bibliography  Save this article

The Cyclical Profit Squeeze: A Marxian Microfoundation

Author

Listed:
  • Jonathan P. Goldstein

    (Economics, Bowdoin College, Brunswick, ME.)

Abstract

This paper develops a microfoundation for the cyclical profit squeeze theory of crisis. An optimal cyclical mark-up pricing policy is derived. The mark-up rises from initial trough until midexpansion and then declines until the terminal trough. The necessary and sufficient conditions for the resulting decline in the profit rate are the capital-labor struggle which determines the behavior of costs and the competition among capitals which restricts rising costs from being fully passed on. It is also shown that this optimal mark-up behavior serves as a microfoundation for a profit squeeze theory of the business cycle.

Suggested Citation

  • Jonathan P. Goldstein, 1985. "The Cyclical Profit Squeeze: A Marxian Microfoundation," Review of Radical Political Economics, Union for Radical Political Economics, vol. 17(1-2), pages 103-128, March.
    • Handle: RePEc:sae:reorpe:v:17:y:1985:i:1-2:p:103-128
    as

    Download full text from publisher

    File URL: http://rrp.sagepub.com/content/17/1-2/103.abstract
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deepankar Basu & Ying Chen & Jong-seok Oh, 2013. "Class struggle and economic fluctuations: VAR analysis of the post-war US economy," International Review of Applied Economics, Taylor & Francis Journals, vol. 27(5), pages 575-596, September.

    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:sae:reorpe:v:17:y:1985:i:1-2:p:103-128. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.urpe.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.