Can the Marginal Productivity Theory of Distribution be Tested?
Change log
Authors
Felipe, J
McCombie, JSL
Abstract
jats:pThis paper shows why attempts to test the neoclassical aggregate marginal productivity theory of distribution are inherently flawed. The use of constant-price value data and an underlying accounting identity mean that the close correspondence often found between the “output elasticities” of a putative aggregate production function and the relevant factor shares is a mere statistical artefact. Likewise, the results of estimating neoclassical labor demand functions must, for the same reason, always give spurious results.</jats:p>
Description
Keywords
marginal productivity theory of distribution, aggregate production function, accounting identity, statistical artefact, B41, E13, E25
Journal Title
Review of Radical Political Economics
Conference Name
Journal ISSN
0486-6134
1552-8502
1552-8502
Volume Title
47
Publisher
SAGE Publications
Publisher DOI
Sponsorship
The authors received no financial support for the research, authorship and/or publication of this article.