Thursday, 26 April 2018

Marx and modern microeconomics

a column by Samuel Bowles for VOX: CEPR’s Policy Portal

Few economists doubt that Marx flunked economics, a judgement mostly based on his labour theory of value. But this column argues that Marx’s representation of the power relationship between capital and labour in the firm is an essential insight for understanding and improving modern capitalism. Indeed, this insight is incorporated into standard principal–agent models of labour and credit markets.

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