This study offers a model that formalizes some of Marx’s insights about how capital accumulation generates contradictions that may reproduce never-ending cycles of booms and slumps. The model takes the reserve army of labor as a regulator of the distribution of class-power over the business...

Can cost-reducing, technical change lead to a fall in the long run rate of profit if class struggle manages to keep the rate of exploitation constant? In this paper we demonstrate, in a general circulating capital model, that if (a) the technical change is capital-using labor-saving (CU-LS), (b)...

Karl Marx set profit to zero to obtain some maximum interest rate and called it profit rate. He further argued that interest rate must be lower than profit rate. That is Marx’s interest rate theory. This paper disproves Marx’s profit rate, and hence his interest rate theory. It also...