When Ricardo saw profit, he called it rent: on the vice of parochial realism

Egmont Kakarot-Handtke ()

MPRA Paper from University Library of Munich, Germany

Abstract: According to Ricardo the principal problem in Political Economy is to determine the laws which regulate the distribution of profits, rents and wages. Ricardo determined the respective shares in real terms and to this end invented an engine of analysis that became paradigmatic. The present paper applies a consistent real and monetary analysis, which is based on a set of objective structural axioms, and contrasts the results with Ricardo’s approach. The general result is that real analysis misses economic reality. The specific result is that rent is a misnomer for the distributed profit of the land owning firm.

Keywords: New framework of concepts; Structure-centric; Axiom set; Real analysis; Monetary analysis; Pricing of land services; Profit ratio equalization (search for similar items in EconPapers)
JEL-codes: B12 E25 (search for similar items in EconPapers)
Date: 2011-09-22
New Economics Papers: this item is included in nep-hpe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://mpra.ub.uni-muenchen.de/33714/1/MPRA_paper_33714.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/33850/1/MPRA_paper_33850.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/33668/1/MPRA_paper_33668.pdf revised version (application/pdf)

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