Still more on why we should bury the Marginal Productivity Theory of the Price of Capital: A Supplementary Note

Roy Grieve ()

No 1215, Working Papers from University of Strathclyde Business School, Department of Economics

Abstract: The purpose of this note is to supplement the author’s earlier remarks on the unsatisfactory nature of the neoclassical account of how the return on capital is determined. (See Strathclyde Discussion Paper 12-03: “The Marginal Productivity Theory of the Price of Capital: An Historical Perspective on the Origins of the Codswallop†). The point is made via a simple illustration that certain matters which are problematical in neoclassical terms are perfectly straightforward when viewed from a classical perspective. Basically, the marginalist model of the nature of an economic system is not fit for purpose in that it fails to comprehend the essential features of a surplus-producing economic system as distinct from one merely of exchange.

Keywords: marginal productivity theory of distribution; reswitching (search for similar items in EconPapers)
JEL-codes: B13 B51 D33 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2012-10
New Economics Papers: this item is included in nep-his and nep-hme
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Working Paper: Still More On Why We Should Bury The Marginal Productivity Theory Of The Price Of Capital: A Supplementary Note (2013)
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