EconPapers    
Economics at your fingertips  
 

Reply to Commentaries on ‘The Labour Theory of Property and Marginal Productivity Theory’

David Ellerman ()
Additional contact information
David Ellerman: University of California at Riverside, USA, University of Ljubljana, Slovenia

Economic Thought, 2016, vol. 5, issue 2, 44 - 61

Abstract: Jamie Morgan's commentary (Morgan, 2016) on my paper 'The Labour Theory of Property and Marginal Productivity Theory' (Ellerman, 2016) and Ted Burczak's later comments (Burczak, 2016) raise a number of issues that surely will occur to other readers and that need to be addressed. I take the occasion to expand upon the arguments and to explore some related issues. In the narrative that unfolds, Frank H. Knight plays the role of the sophisticated defender of the system of renting, hiring and employing human beings. He was quite clear that the social role of economics is to develop an idealised model, the competitive free enterprise model, and then to frame the normative discussion in terms of that model. Knight would agree with the whole thread of heterodox 'criticism' that the actual economy falls far short of the ideal – which is why I largely eschewed the descriptive shortcomings of ideal model as a purported model of the actual economy. Instead my paper focused on developing a critique of the key part of the idealised model, the marginal productivity theory of distribution under competitive conditions. That critique is based on the usual juridical principle of imputing legal responsibility in accordance with factual responsibility – the principle whose property-theoretic application is the modern treatment of the labour theory of property. Historically, heterodox economics faced a fork in the road in the 19th century: whether to criticise 'the system' by developing the inchoate 'labour theory' as a theory of value or a theory of property. Marx and much of left-wing economics took the labour-theory-of-value road, whereas my paper is part of a modern attempt – Thomas Hodgskin (1832) being an earlier attempt – to take the labour-theory-of-property road. As we will see, much of the debate still revolves around these two roads. Read David Ellerman's original paper "The Labour Theory of Property and Marginal Productivity Theory" › Read Jamie Morgan's commentary on David Ellerman's paper ›

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://et.worldeconomicsassociation.org/papers/rep ... productivity-theory/ (text/html)
http://et.worldeconomicsassociation.org/files/WEA-ET-5-2-Ellerman.pdf (application/pdf)

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:wea:econth:v:5:y:2016:i:2:p:44

Access Statistics for this article

Economic Thought is currently edited by Kyla Rushman

More articles in Economic Thought from World Economics Association Contact information at EDIRC.
Series data maintained by Jake McMurchie ().

 
Page updated 2017-11-25
Handle: RePEc:wea:econth:v:5:y:2016:i:2:p:44