[OPE-L:6097] Re: falling profits

From: Gerald_A_Levy (Gerald_A_Levy@email.msn.com)
Date: Fri Oct 26 2001 - 19:35:20 EDT

Re Fred's [6091]:

> In mainstream macroeconomics (in all its versions), profit is not even a
> variable in the theory!  Similarly, in mainstream macro analyses of
> recessions, profit is almost never mentioned, certainly not in academic
> journals.  

I guess it depends on how you define 'mainstream'.  

Two arguably 'mainstream' schools which include a role for profits
as a major variable are:

1) the Austrian strand of marginalism: didn't Bohm-Bawerk, Menger,
von Mises, etc. all incorporate profit into their basic macro theory?

2) 'Supply-side' economic theory: isn't the level of corporate profits
a crucial variable in that theory that leads to changes in the level of
investment and then aggregate supply?

In solidarity, Jerry

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