PROFIT SQUEEZE AND COMPETITIVE PRESSURE

概要

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In this paper we consider the effect of the price competition and free movements of capital upon the rates of profit. Firms are assumed to move freely to the sectors with higher rates of profit, and prices and wages are assumed to move flexibly to eliminate the demand-supply gaps. Okishio (1999) proved that the economy converges to Walrasian zero-profit equilibrium under certain parameter conditions and no technical changes. It will be shown that the technical changes reinforce the convergent property of this competitive economy and that in the case where labor supply grows and the independent expenditure in real terms exists, the economy converges to the stationary state with a positive rate of profit.
神戸大学の論文