Profit Rates, Accumulation, Production and Circulation: The Basic Concepts of the Classical Theory of Value

Cuadernos de Economía, Vol. 25, No. 44, 2006

24 Pages Posted: 22 Jul 2007

See all articles by Edith Klimovsky

Edith Klimovsky

Metropolitan Autonomous University

Abstract

In systems of industries with simple products and circulating capital without natural resources, developed in the framework of the classical theory of value, profit rates, whether uniform or not, can be interpreted in physical terms, and prices satisfy profitability conditions as well as circulation conditions and are, therefore, prices of reproduction, regardless of where the surplus goes. This article demonstrates how the utilization of the surplus affects the conditions for the existence of equilibrium but not the solution for that equilibrium, which depends only on technique and distribution.

Keywords: accumulation, classical theory, disequilibrium, prices, profit, reproduction

JEL Classification: E11, E30, E32, O41.

Suggested Citation

Klimosvsky, Edith Alicia, Profit Rates, Accumulation, Production and Circulation: The Basic Concepts of the Classical Theory of Value. Cuadernos de Economía, Vol. 25, No. 44, 2006, Available at SSRN: https://ssrn.com/abstract=1001383

Edith Alicia Klimosvsky (Contact Author)

Metropolitan Autonomous University ( email )

Calzada del Hueso 1100
Coyoacan
Mexico, 04960
Mexico

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