THE WAGE‐PROFIT RELATION WITHOUT CONSTANT RETURNS(1)
- 1 October 1979
- journal article
- Published by Wiley in Metroeconomica
- Vol. 31 (3) , 335-348
- https://doi.org/10.1111/j.1467-999x.1979.tb00251.x
Abstract
It is shown that well‐known propositions of Sraffa concerning the relation between the wage and the rate of profits are not valid without the assumption of constant returns or some other restrictive assumption. The paper recognises a distinction between classical and marginalist methods of analysis but disputes the view that the pursuit of the classical method in value theory obviates the need to assume constant returns. It is argued, on the contrary, that the assumption of constant returns is necessary to the fruitful application of the classical method.Keywords
This publication has 4 references indexed in Scilit:
- Fundamental Issues in Trade TheoryPublished by Springer Nature ,1979
- Lectures on the Theory of ProductionPublished by Springer Nature ,1977
- Mr. Sraffa's Standard Commodity and the Rate of ExploitationThe Quarterly Journal of Economics, 1975
- Heterogeneous Capital, the Production Function and the Theory of DistributionThe Review of Economic Studies, 1970