Tag Archives: rent

5.0 Fluke Cases This post is a continuation of this one. This is a numeric example of intensive rent. Here I present five fluke cases before depicting how the analysis of the choice of technique varies with the full range of relative markups in agriculture. 5.1 Switch Point at Maximum Scale Factor for Epsilon In the first fluke case, the wage curves for Alpha and Delta intersect at the maximum scale factor for the rate of profits for Delta (Figure 7). Figure 8 displays the graphs of the...

Figure 1: Variation of the Technique with the Markup in Agriculture1.0 Introduction This post is the start of a recreation of a previous post, with a requirement that relative markups lie on a simplex. These two posts are intended to explain Figure 1, above, which presents a summary of the results of the analysis of the choice of technique, given any level of the relative markup in agriculture, as compared with the relative markups in the non-agricultural industries. My presentation is...

Figure 1: Wages Curves for Example of Intensive Rent1.0 Introduction This post modifies an example from Antonio D'Agata. Two types of land exist, each specialized for producing a specific commodity. In the example, some wage curves slope upwards, which is not possible in a model with circulating capital alone. The cost-minimizing technique is not found from the outer frontier of the wage curves. For one range of the rate of profits, no cost-minizing technique exists, even though a...

I have thought about what would be the minimal structure of an example that combines extensive and intensive rent. I want to include a commodity produced without land, as well as an agricultural commodity. This post considers a simpler example. An analysis of extensive rent includes the identification of the order of efficiency and the order of rentability, given the wage or the rate of profits. I take the concept of these orders from Alberto Quadrio Curzio. Can these orders be defined in...

Figure 1: Extensive Rent Example As Relative Market Power Varies Between Industry And Agriculture This post is an elaboration on this past post. The analysis of the choice of technique varies with perturbations of relative markups in industry and agriculture. Figure 1 depicts this variation, while Figure 2 is an enlargement of the lower range of the relative markup in industry. The heavy solid lines in Figure 1, other than the horizontal line at the top, are switch points on the inner...

Figure 1: Choice of Technique with Extensive Rent and Competitive Markets1.0 Introduction I am making some slow progress on recreating past posts. For variation, I here take the wage as given. If I write this up more formally, I intend not to try to relate it to Marx's concept of absolute rent. The point is to illustrate the following comment with long-lasting variations in market power between industry and agriculture: "The complexity of the outcomes with the potential existence of...

Figure 1: Variation of the Technique with Markup in Agriculture This post is a continuation a of a previous example. I suppose this is the first example in post Sraffian price theory which combines intensive rent and markup pricing. I do not plan on trying to publish it, in a stand-alone article. D'Agata (1983) sets some coefficients to zero to simplify it for his purposes. I would like a range of parameters where I get reswitching or capital-reversing. I have found a case where, given the...

Figure 1: Wage Curves and Rent for an Example of Intensive Rent This post is a continuation of a previous example. This is a fluke case insofar as the Alpha and Delta wage curves intersect at the scale factor for the rate of profits that is the maximum possible for the Epsilon technique. This fluke case is associated with a qualitative change in the range of the scale factor for the rate of profits in which no cost-minimizing technique exists. The technology, endowments, requirements...

Figure 1: Wage Curves and Rent for an Example of Intensive Rent The first man who, having enclosed a piece of ground, bethought himself of saying, 'This is mine', and found people simple enough to believe him, was the real founder of civil society. From how many crimes, wars and murders, from how many horrors and misfortunes, might not anyone have saved mankind by pulling up the stakes, filling in the ditch, and crying to his fellows, 'Beware of listening to this imposter; you are undone if...

Figure 1: Wage Curves and Rent for an Example of Intensive Rent1.0 Introduction This post is one in a series exploring variations of an example from Antonio D'Agata (1983). This post demonstrates that at least one of my fluke cases can appear in a model of intensive rent by varying a parameter specifying relative markups among sectors. This post is only a start of exploring the parameter space of relative markups in a specific numeric example of intensive rent. Suppose the rate of...