Title: On the Nature and Use of the Concept of the Marginal Physical Product in Post Keynesian Economics: A Comment
Abstract:The marginal physical product (MPP) is of little use in Post Keynesian economics because it is an integral part of neoclassical theory of value, distribution, and output which Post Keynesian analysis ...The marginal physical product (MPP) is of little use in Post Keynesian economics because it is an integral part of neoclassical theory of value, distribution, and output which Post Keynesian analysis rejects. Keynes wrote General Theory to overthrow neoclassical theory of output and employment, but attempt was unsuccessful because he failed to realize that neoclassical theories of output, employment, value, and distribution are inseparable and needed to be discarded in toto. In particular, by accepting first (neo)classical postulate (the wage is equal to marginal product of labor) he seemed to be accepting neoclassical marginal productivity theory of factor prices and distribution with its implication that marginal product of labor curve is demand curve for labor at macro-level. This, apart from causing confusion McKenna and Zannoni refer to, paved way to neoclassical resurgence (Brothwell, 1986). It is necessary, therefore, not only to MPP concept (as suggested by McKenna and Zannoni) but to replace whole neoclassical system, together with its notion of what constitutes equilibrium.' McKenna and Zannoni argue that the of a uniform rate of profit is capable of performing two functions formerly identified with marginal productivity concept. What they mean presumably is that neoclassical system should be replaced byRead More
Publication Year: 1987
Publication Date: 1987-07-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 3
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