Kakarot-Handtke, Egmont (2011): When Ricardo saw profit, he called it rent: on the vice of parochial realism.
Download (159kB) | Preview
According to Ricardo the principal problem in Political Economy is to determine the laws which regulate the distribution of profits, rents, and wages. Ricardo determined the respective shares in real terms and to this end invented an engine of analysis that became paradigmatic. The present paper applies a consistent real and monetary analysis, which is based on a set of objective structural axioms, and contrasts the results with Ricardo’s approach. The general result is that real analysis misses economic reality. The specific result is that rent is a misnomer for the distributed profit of the land owning firm.
|Item Type:||MPRA Paper|
|Original Title:||When Ricardo saw profit, he called it rent: on the vice of parochial realism|
|Keywords:||New framework of concepts; Structure-centric; Axiom set; Real analysis; Monetary analysis; Pricing of land services; Profit ratio equalization|
|Subjects:||B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B12 - Classical (includes Adam Smith)
E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E25 - Aggregate Factor Income Distribution
|Depositing User:||Egmont Kakarot-Handtke|
|Date Deposited:||25. Sep 2011 19:12|
|Last Modified:||24. Feb 2013 06:02|
Arrow, K. J., and Hahn, F. H. (1991). General Competive Analysis. Amsterdam, New York, NY, etc.: North-Holland.
Blaug, M. (1998). Economic Theory in Retrospect. Cambridge: Cambridge University Press, 5th edition.
Deane, P. (1978). The Evolution of Economic Ideas. Cambridge, London, New York, NY: Cambridge University Press.
Ellerman, D. P. (1986). Property Appropriation and Economic Theory. In P. Mirowski (Ed.), The Reconstruction of Economic Theory, pages 41–92. Boston, MA, Dordrecht, Lancaster: Kluwer Nijhoff.
Fraser, L. M. (1937). Economic Thought and Language. A Critique of Some Fundamental Economic Concepts. London: Black.
Halévy, E. (1960). The Growth of Philosophic Radicalism. Boston, MA: Beacon Press.
Ingrao, B., and Israel, G. (1990). The Invisible Hand. Cambridge, MA, London: MIT Press.
Jevons, W. S. (1911). The Theory of Political Economy. London, Bombay, etc.: Macmillan, 4th edition.
Kakarot-Handtke, E. (2011). Reconstructing the Quantity Theory (I). SSRN Working Paper Series, pages 1–22. URL http://ssrn.com/abstract=1895268.
Kanth, R. K. (1992). Capitalism and Social Theory. The Science of Black Holes. Armonk, NY, London: Sharpe.
Knight, F. H. (1935). The Ricardian Theory of Production and Distribution. Canadian Journal of Economics and Political Science, 1(1): 3–25. URL http://www.jstor.org/stable/136595.
Mill, J. S. (2004). On the Definition of Political Economy; and the Method of Investigation Proper to it., volume PA 18202, pages 93–125. Electronic Classic Series: Pennsylvania State University.
Nadal, A. (2004). Behind the Building Blocks. Commodities and Individuals in General Equilibrium Theory. In F. Ackerman, and A. Nadal (Eds.), The Flawed Foundations of General Equilibrium, pages 33–47. London, New York, NY: Routledge.
Porter, T. M. (1994). Rigor and Practicality: Rival Ideals of Quantification in Nineteenth-Century Economics. In P. Mirowski (Ed.), Natural Images in Economic Thought, pages 128–170. Cambridge: Cambridge University Press.
Ricardo, D. (1981). On the Principles of Political Economy and Taxation. The Works and Correspondence of David Ricardo. Cambridge, New York, NY, etc.: Cambridge University Press.
Schumpeter, J. A. (1994). History of Economic Analysis. New York, NY: Oxford University Press.
Stigum, B. P. (1991). Toward a Formal Science of Economics: The Axiomatic Method in Economics and Econometrics. Cambridge, MA: MIT Press.
Vickers, D. (1995). The Tyranny of the Market. A Critique of Theoretical Foundations. Ann Arbor; MI: University of Michigan Press.
Wiles, P. (1979). Ideology, Methodology, and Neoclassical Economics. Journal of Post Keynesian Economics, 2(2): pp. 155–180. ISSN 01603477. URL http://www.jstor.org/stable/4537522.
Available Versions of this Item
When Ricardo saw profit, he called it rent: on the vice of parochial realism. (deposited 22. Sep 2011 13:36)
- When Ricardo saw profit, he called it rent: on the vice of parochial realism. (deposited 25. Sep 2011 19:12) [Currently Displayed]