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The Question of Profits

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  • Robin Hahnel

Abstract

Where do profits come from? Are they morally justified? Sraffians provide a clear answer to the first question but have declined to give a direct answer to the second question. This article argues that the “fundamental Sraffian theorem†implies a compelling moral critique of profits, but that this critique can be strengthened by replacing the “contribution-based†approach common among economists with a “sacrifice-based†theory consistent with work by modern egalitarian philosophers. JEL Classification: B51, D33, D63

Suggested Citation

  • Robin Hahnel, 2019. "The Question of Profits," Review of Radical Political Economics, Union for Radical Political Economics, vol. 51(1), pages 129-146, March.
    • Handle: RePEc:sae:reorpe:v:51:y:2019:i:1:p:129-146
    DOI: 10.1177/0486613417709032
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    References listed on IDEAS

    as
    1. Morishima, Michio, 1974. "Marx in the Light of Modern Economic Theory," Econometrica, Econometric Society, vol. 42(4), pages 611-632, July.
    2. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676.
    3. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    4. Kotlikoff, Laurence J & Summers, Lawrence H, 1981. "The Role of Intergenerational Transfers in Aggregate Capital Accumulation," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 706-732, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Sraffa; distributive justice; surplus; profits; effort;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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