Why Capital Hires Labour and Why Labour Does Not Hire Capital

Homo Oeconomicus Vol. 18(3/4), p. 429-436, 2002

8 Pages Posted: 6 Oct 2016

See all articles by Meghnad Desai

Meghnad Desai

London School of Economics & Political Science (LSE)

Manfred J. Holler

University of Hamburg - Faculty of Economics and Business Administration

Date Written: October 4, 2002

Abstract

It is shown that in an economy with non-marginal set-up costs on the capital side, which imply a minimum requirement of capital, production may be carried out by capitalist firms only, irrespective of the fact that workers can exchange work for capital so that labour-managed production seems feasible.

Keywords: Labour-Managed Production, Starvation, Set-Up Costs

Suggested Citation

Desai, Meghnad and Holler, Manfred J., Why Capital Hires Labour and Why Labour Does Not Hire Capital (October 4, 2002). Homo Oeconomicus Vol. 18(3/4), p. 429-436, 2002, Available at SSRN: https://ssrn.com/abstract=2847957

Meghnad Desai

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Manfred J. Holler (Contact Author)

University of Hamburg - Faculty of Economics and Business Administration ( email )

Von-Melle-Park 5
Hamburg, 20146
Germany

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