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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. 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.
    3. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676, September.
    4. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    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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