Rising ‘Material’ vs. Falling ‘Value’ Rates of Profit
Trial by Simulation
Bibliographic Data
| ID | 11950656 |
|---|---|
| Authors | David Laibman (corresponding author) |
| Year | 2001 |
| Volume | 25 |
| Issue | 1 |
| Pages | 79-96 |
| Publication date | 2001-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Capital & Class (JOURNAL) |
| Journal identifiers | ISSN: 0309-8168 • E-ISSN: 2041-0980 |
| Publisher | SAGE Publishing (PUBLISHER • US) |
| DOI | 10.1177/030981680107300105 |
| OpenAlex | W2041301117 |
| Language | EN |
| Citations received | 3 |
| References cited | 7 |
The ‘temporalist’ or ‘temporal single system’ (TSS) school of Marxist economic theory insists that, when capital stocks are valued at historical cost, capital accumulation as such must cause the ‘value’ rate of profit to fall, even while the ‘material’ rate rises. This claim fatally ignores the depreciation and scrapping of fixed capital. Simulation modeling reveals that once early vintages of capital goods and their associated labor forces and output are scrapped, the average productivities of labour and capital follow their latest-vintage equivalents upward, and the ‘value’ rate of profit follows the same course as the ‘material’ rate. ‘Temporalism’ thus fails to serve as an adequate foundation for the theory of capitalist accumulation and crisis
Capital (architecture · Capital accumulation · Capital formation · Capital good · Capitalism · Cost of capital · Depreciation (economics · Economics · Financial capital · Fixed capital · Labour economics · Marxist philosophy · Microeconomics · Prices of production · Profit (economics · Profit margin · Profit rate · Rate of profit · Surplus value · Economic Theory and Institutions · Economic Theory and Policy · Finance · Political Economy and Marxism
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,14 |
| Citation span | 2005 - 2021 (17) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 3 |