Kalecki and the Grossmann Model of Economic Breakdown

Bibliographic Data

ID10487366
AuthorsAndrew B Trigg (0000-0001-8333-5129, corresponding author)
Year2004
Volume68
Issue2
Pages187-205
Publication date2004-04-30
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueScience & Society (JOURNAL)
Journal identifiersISSN: 0036-8237 • E-ISSN: 1943-2801
PublisherGuilford Press (PUBLISHER • US)
DOI10.1521/siso.68.2.187.31004
OpenAlexW2030429014
LanguageEN
Citations received5
References cited7

Henryk Grossmann radically changed the course of Marxist economics with his 1929 adaptation of Marx's law of the falling rate of profit. By a simple extension of Otto Bauer's simulation of Marx's reproduction schema, Grossmann demonstrates that accumulation leads to a shrinking pool of surplus value and eventual economic breakdown. It can, however, be argued that once the role of money is taken seriously in Marx's reproduction schema it is no longer possible for accumulation to swallow up all the available surplus value. By identifying the role of the Kalecki principle in Marx's schema, that capitalists earn what they spend, a modified simulation of the Bauer/Grossmann model is developed in which there is no precise mechanical breakdown. This approach leads to a focus, in interpreting Marx's law of the falling rate of profit, on problems of realization associated with an increasing mass of surplus value

Capitalism · Economics · Marxist philosophy · Mathematical economics · Microeconomics · Neoclassical economics · Political science · Prices of production · Profit (economics · Rate of profit · Schema (genetic algorithms · Surplus value · Computer Science · Economic theories and models · Economic Theory and Policy · Law · Political Economy and Marxism

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