The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Humbug Production Function

  • Anwar Shaikh
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_898

Abstract

Neoclassical economics has always tried to portray wages and profits as mere technical variables. At an aggregate level, this is accomplished by connecting labour and capital to output through a ‘well-behaved’ aggregate production function, with the marginal products of labour and capital equal to the wage rate and profit rate, respectively. Thus in competitive equilibrium each social class is pictured as receiving the equivalent of the marginal product of the factor(s) it owns (Shaikh 1980).

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Anwar Shaikh
    • 1
  1. 1.