Template-Type: ReDIF-Paper 1.0
Author-Name: Roy Grieve
Author-Name-First: Roy
Author-Name-Last: Grieve
Author-Workplace-Name: Department of Economics, University of Strathclyde
Title: Still more on why we should bury the Marginal Productivity Theory of the Price of Capital: A Supplementary Note
Abstract: The purpose of this note is to supplement the author’s earlier remarks on the unsatisfactory nature of the neoclassical account of how the return on capital is determined. (See Strathclyde Discussion Paper 12-03: “The Marginal Productivity Theory of the Price of Capital: An Historical Perspective on the Origins of the Codswallop”). The point is made via a simple illustration that certain matters which are problematical in neoclassical terms are perfectly straightforward when viewed from a classical perspective. Basically, the marginalist model of the nature of an economic system is not fit for purpose in that it fails to comprehend the essential features of a surplus-producing economic system as distinct from one merely of exchange.
Length: 12 pages
Creation-Date: 2012-10
Revision-Date: 
Publication-Status: Published
File-URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/2012/12-15Final.pdf
File-Format: Application/pdf
Number: 1215
Classification-JEL: B13, B51, D33
Keywords: marginal productivity theory of distribution; reswitching
Handle: RePEc:str:wpaper:1215