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The Profit Theory is False Since Adam Smith. What About the True Distribution Theory?

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  • Kakarot-Handtke, Egmont

Abstract

All popular schools lack a consistent profit theory. Economists have no true conception of the most important phenomenon in their universe. This methodological defect persists since Adam Smith. Therefore, the theories of income and wealth distribution are wrong by logical implication. If the conclusions of a theory do not find any counterpart in reality the fault lies in the premises. In order to rectify distribution theory it is necessary to substitute the conventional subjective-behavioral axioms by objective-structural axioms. A major result of the present paper is that distribution is not governed by marginal productivity but by the distributed profit ratio.

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  • Kakarot-Handtke, Egmont, 2014. "The Profit Theory is False Since Adam Smith. What About the True Distribution Theory?," MPRA Paper 59411, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:59411
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    References listed on IDEAS

    as
    1. Nicholas Georgescu-Roegen, 1979. "Methods in Economic Science," Journal of Economic Issues, Taylor & Francis Journals, vol. 13(2), pages 317-328, June.
    2. Kakarot-Handtke, Egmont, 2011. "Primary and secondary markets," MPRA Paper 32996, University Library of Munich, Germany.
    3. Kakarot-Handtke, Egmont, 2013. "Understanding Profit and the Markets: The Canonical Model," MPRA Paper 48691, University Library of Munich, Germany.
    4. Anatol Murad, 1953. "Questions for Profit Theory," American Journal of Economics and Sociology, Wiley Blackwell, vol. 13(1), pages 1-14, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    new framework of concepts; structure-centric; axiom set; income distribution; wealth distribution; inequality;
    All these keywords.

    JEL classification:

    • B49 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Other
    • B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
    • D30 - Microeconomics - - Distribution - - - General
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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