An Opportunity for the Working Class with Increased Markups

22 Pages Posted: 8 Aug 2018  

Robert L. Vienneau

Independent

Date Written: July 21, 2018

Abstract

This article presents an analysis based on a comparison of stationary states. With technology and relative markups among industries taken as exogenous, the long-period trade-off between wages and rates of profits is determined. A long-period change in relative markups among industries can create a switch point exhibiting capital-reversing. Around such a switch point, a higher wage is associated with firms wanting to employ more labor for a given net output – a favorable occurrence for organized labor.

Keywords: Markup Pricing, Capital-Reversing, Cambridge Capital Controversy

JEL Classification: B51, D33, D43, J21, L13

Suggested Citation

Vienneau, Robert L., An Opportunity for the Working Class with Increased Markups (July 21, 2018). Available at SSRN: https://ssrn.com/abstract=3217554 or http://dx.doi.org/10.2139/ssrn.3217554

Robert L. Vienneau (Contact Author)

Independent ( email )

209 Maple Street
Rome, NY 13440
315-336-5417 (Phone)
315-334-4964 (Fax)

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