Comparative growth dynamics in a discrete-time Marxian circuit of capital model

Arbeitspapier

This paper develops a discrete-time formalization of the circuit of capital model presented by Marx in Volume II of Capital Marx (1993) as a tool for aggregate economic analysis of capitalist economies. The discrete-time formalization closely follows and extends the continuous-time formalization in Foley (1982, 1986a). The discrete-time model is used to address two important issues of interest to the heterodox economic tradition: profit-led versus wage-led growth, and the growth-reducing impact of non- production credit. First, it is demonstrated that both profit-led and wage-led growth regimes can be accommodated within the Marxian circuit of capital model. Second, it is demonstrated that the steady-state growth rate of a capitalist economy is negatively related to the share of consumption credit in total net credit, when the total credit is large to begin with.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2011-12

Classification and Topics

• Classification: Wirtschaft ; Current Heterodox Approaches: Socialist; Marxian; Sraffian
• Subject: circuit of capital ; economic growth ; consumption credit ; Marxian political economy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Basu, Deepankar
• Event: Veröffentlichung
• (who): University of Massachusetts, Department of Economics
• (where): Amherst, MA
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/64182
• Last update: 10.03.2025, 11:43 AM CET