Capital Theory and Effective Demand

Bibliographic Data

ID11697302
AuthorsAmit Bhaduri (0009-0003-3195-8553, Jawaharlal Nehru University , New Delhi, India, corresponding author)
Year2022
Volume41
Issue1
Pages168-179
Publication date2022-04-28
Open AccessYes
TypeARTICLE
VenueContributions to Political Economy (JOURNAL)
Journal identifiersISSN: 0277-5921 • E-ISSN: 1464-3588
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1093/cpe/bzac004
OpenAlexW4293240585
LanguageEN
References cited14

Using simple national income accounting and a fixed coefficient two sector model this paper examines how the problem of capital valuation upsets the foundations of the marginal productivity theory of distribution. Assuming no capital valuation problem and zero Wicksell effect, both marginalist theory and the labour theory of value hold. However, the same equation that makes the Wicksell effect zero also entails the profit realization condition of effective demand for the ‘golden age’. This argument is extended providing a new perspective to the link between effective demand and capital theory

Capital (architecture · Economics · Effective demand · Macroeconomics · Marginal product · Marginal utility · Mathematical economics · Microeconomics · Neoclassical economics · Profit (economics · Valuation (finance · Zero (linguistics · Economic Theory and Institutions · Economic Theory and Policy · Political Economy and Marxism · Finance

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