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Profits and exploitation: a reappraisal

  • Naoki Yoshihara
  • Roberto Veneziani
Chapter
Part of the Advances in Mathematical Economics book series (MATHECON, volume 16)

Abstract

This paper provides a mathematical analysis of the Marxian theory of the exploitation of labour in general equilibrium models. The two main definitions of Marxian exploitation in the literature, proposed by Morishima (1974) and Roemer (1982), respectively, are analysed in the context of general convex economies. It is shown that, contrary to the received view, in general these definitions do not preserve the so-called Fundamental Marxian Theorem (FMT), which states that the exploita- tion of labour is synonymous with positive profits. A new definition of Marxian la- bor exploitation is proposed, which is shown to preserve the FMT in general convex economies, in equilibrium.

Keyword

exploitation profits reproducible solutions 

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Copyright information

© Springer Japan 2012

Authors and Affiliations

  1. 1.The Institute of Economic ResearchHitotsubashi UniversityKunitachi, TokyoJapan
  2. 2.Department of EconomicsQueen Mary University of LondonLondonUK

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