The Marxian Optimal Growth Model, Reproduction Scheme, and General Law of Capitalist Accumulation

Hiroshi Onishi

Research output: Contribution to journalArticle

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Abstract

As Professor Okishio proved the existence of exploitation mathematically, the birth,
growth and death of capitalism should also be proved mathematically, and for this purpose
we formulated the so-called Marxian optimal growth model. This is not a model in value-term
because peoples’ direct interest is not value itself but utility and firms’ interest is not value but
profit. However, a very important finding of this article is that such a non-value-term model can
be translated into a value-term model, and we introduce a value-term reproduction scheme from
the Marxian optimal growth model. In this form, we confirm that our model fulfills the conditions
of simple reproduction and extended reproduction. However, a more important fact we found
is that this optimal path shows (1) rising organic composition of capital, (2) falling rate of profit,
and (3) falling ratio of output of the first sector. The second fact contradicts the Okishio Theorem,
and the third contradicts Lenin.
Original languageEnglish
JournalWorld Review of Political Economy
Volume2
Issue number2
Publication statusPublished - 2011
Externally publishedYes

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Optimal growth
Growth model
Exploitation
Optimal path
Capitalism
Rate of profit

Keywords

  • death of capitalism
  • reproduction scheme
  • falling rate of profit
  • organic composition

Cite this

The Marxian Optimal Growth Model, Reproduction Scheme, and General Law of Capitalist Accumulation. / Onishi, Hiroshi.

In: World Review of Political Economy, Vol. 2, No. 2, 2011.

Research output: Contribution to journalArticle

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