Still More on Why We Should Bury the Marginal Productivity Theory of the Price of Capital: a Supplementary Note

Roy Grieve

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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 surplusproducing economic system as distinct from one merely of exchange.
Original languageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Pages1-11
Number of pages12
Volume12
Publication statusPublished - 2012

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Keywords

  • marginal productivity theory of distribution
  • reswitching

Cite this

Grieve, R. (2012). Still More on Why We Should Bury the Marginal Productivity Theory of the Price of Capital: a Supplementary Note. (15 ed.) (pp. 1-11). Glasgow: University of Strathclyde.