Economics and Finance


Introducing Marxian Productivity Development Economics

Authors: Erman ZENG

In the first part of this paper, a neoclassical framework is proposed which places the Marxian conceptions of both Constant Capital and Variable Capital into a Cobb-Douglas production function like model in order to obtain the mathematical formulations of Marx labour value function and Marx surplus value function as well as Marx production function , which leads to the Marxian 1st theorem about technical progress: . In the second part, the general equilibrium properties of the quantitative Marxian productivity theories are investigated by using variation method. The Marxian 2nd theorem about dynamic equilibrium asserts, there is a input-output equilibrium existed in the reproduction process between Two Departments ; The Marxian 3rd theorem states that only equilibrium growth leads to the positive value of the productivity parameter which is defined as the product of the change rate of the organic composite of capital with the labor output elasticity of Cobb-Douglas production function[ ], as well as the rising rate of profit. The present paper is also a generalization of the precise conditions under which the profit rate rises or falls. Only when an economic system achieves the Marxian equilibrium including its each production Department, there would be no business cycle; otherwise there exists some potential crisis. At last, an econo-sociological Marxism model is proposed as a criterion for a regional optimal economic growth.

Comments: 20 Pages.

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[v1] 2015-10-19 21:44:57

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