Land, technical progress and the falling rate of profit

Howard Petith

Journal of Economic Behavior & Organization, 2008, vol. 66, issue 3-4, 687-702

Abstract: The paper sets out a one sector growth model with a neoclassical production function in land and a capital-labour aggregate. If the elasticity of substitution between land and the capital-labour aggregate is less than one and if the rate of capital augmenting technical progress is strictly positive, then the rate of profit will fall to zero. This result holds regardless of the rate of land augmenting technical progress: no amount of technical advance in agriculture can stop the fall in the rate of profit. The paper also discusses the relation of this result to the classical and Marxist literature.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167-2681(07)00060-1
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:66:y:2008:i:3-4:p:687-702

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().