Abstract
This article aims at reconsidering Roemer's CECP(The Class Exploitation Correspondence Principle) in the perspective of neo-classical growth theory. Roemer has proved CECP(The Class Exploitation Correspondence Principle) in various situations and then claimed that CECP is very robust. But he does not take long-term accumulation of capital into account. Roemer assumes that economic agents behave to maximize the one period utility or to maximize one period wealth. And then, time pass is regarded as just the overlap of one period maximization problem. This methodology is different from that of neo-classical growth theory in a major way. In this article, I try to introduce the method of neo-classical growth theory into the Roemer's model. In other words, I try to incorporate the assumption into Roemer's model that economic agent such as worker, who has less wealth than capitalist, also accumulates capital so as to maximize his lifetime utility or output. The main conclusions of this paper are as follows. Whether exploitation disappears in the long-run depends on the optional right of worker. If worker does not have a right to determine what ratio of labor power he allocate for accumulating his own capital, capitalist allocate all labor power of worker at the production of consumption goods. In this case, amount of capital that worker owns dose not grow since the initial period and exploitation remains in existence forever. In contrast, if worker has a right to allocate his labor power for his own accumulation, he accumulates capital to the same amount as the economic agent who lives in the standard model does. In this situation, the optimal response of capitalist to the behavior of worker is to accumulate capital to the same amount as worker will do. In other words, capitalist does not accumulate capital beyond the amount which worker aims at and will achieve someday. Capitalist exploits worker only in the transition period toward the steady state where differential of asset between worker and capitalist does not exist anymore.
