The effect of technical change and accumulation on the profit rate depends on their effect on the real wage rate. Employing a standard one-sector "circulating-capital" model, it is assumed that the wage rate is at least non-decreasing in labor demand. Then, ceteris paribus, capital-using...

In response to a critique by Laibman (1996) of earlier work (Thompson 1995) exploring the effect of technical change and accumulation on the real wage rate and thus, via the Okishio Theorem, the rate of profit, it is demonstrated that in a wide range of one-sector models (including that of...