Tag Archives: rent

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...

Figure 1: Variation of Technique with Relative Markups1.0 Introduction This is a rewrite of a previous post with somewhat 'nicer' values for coefficients of production. I also expand on it with some observations on absolute rent. As far as I know, these posts are the first explicit presentation in the post-Sraffian tradition of a model of the prices of production with extensive rent and markup pricing. These posts explore the conflict over distribution among workers, capitalists, and...

Marx writes about rent extensively in Part II of Theories of Surplus Value and in volume 3 of Capital. I read Theories of Surplus Value decades ago. I have been trying to read the chapters of volume 3 on rent, that is, chapters 37 to 47. In general, these chapters do not use Hegelian terminology, but are just a matter of mathematical economics. Marx conflates analyses I would keep separate. Maybe this is a matter of a dynamic analysis set in historical time. I suppose I do not have...

Figure 1: Variation of Technique with Relative Markups "That 'diminishing returns' was not an essential element in the surplus-based theory emerged in Marx's criticisms of Ricardo. Sraffa (1960), in his short chapter on land, the implications of which have yet to be developed, shows how the classical view of rents need not necessarily rest on the conception of 'the law of diminishing returns' or need not suggest necessarily any functional relationship between output and cost, or even presume...

I want to note some instances in the literature that argue that one strain in the marginal revolution was an extension of (a misunderstanding of) the theory of intensive rent in classical political economy to all factors of production, particularly capital. This this is not of only historical interest. It suggests that another approach, that of classical political economy, to value and distribution exists. Furthermore, a treatment of intensive rent exists that is opposed to marginalism, in...