The Case for Reformulating Marx's Theory of the Falling Rate of Profit

抄録

This paper attempts to synthesize the famous Okishio theorem on Marx's theory of the falling rate of profit with what we call the 'Foley-Laibman theorem.' By presenting a comprehensive list of all of the possible cases in a biased technical change, the equilibrium rate of profit will be identified in relation to the real wage and the rate of exploitation. Using an explicitly dynamic framework, a plausible path of capital accumulation will also be provided. It follows that all of the possible cases analyzed in a comparative static setting consecutively emerge at each phase of the accumulation. According to our interpretation, the capitalist accumulation process at earlier stages is specified as the Invisible Hand game, which will eventually be transformed into the Prisoner's Dilemma game at later stages due to the changes in the conditions of capital accumulation.