On Mon, 26 Aug 2002 15:03:24 -0700 Michael Perelman <michael at ecst.csuchico.edu> wrote:
> The importance of reswitching is that it shows
that the marginal productivity of capital is invalid as a macroeconomic
concept. As a result, neoclassical economics has no theory of profit.
Well, it's not that there is no theory of profit, it's just that it has no theory of profit that categorically excludes theft and class struggle.
Actually, it's more than that: it's that there is no theory of profit consistent with the view of prices as outcome of supply and demand, and distribution as factor payments, no?
Christian