Marxists and Accountants: Bien Étonnés De Se Trouver Ensemble

5 Pages Posted: 15 Mar 2014

See all articles by Marc Jegers

Marc Jegers

Free University of Brussels (VUB) - Micro-Economics for Profit and Non Profit Sector (MICE)

Date Written: May 2014

Abstract

In a recent issue of this journal, Basu (2013, Metroeconomica, 64 (2), pp. 293–318) presented some conditions under which replacement cost‐based profit rates and historical cost‐based profit rates evolve similarly, making, under these conditions, the choice between them irrelevant when studying long‐term profitability trends. The present note adds some realism to this analysis by allowing depreciation of fixed assets, and shows that the choice between the two profit rate operationalizations becomes relevant. Additionally, the impact of growth on the relation between the two profit rate evolutions is assessed.

Suggested Citation

Jegers, Marc, Marxists and Accountants: Bien Étonnés De Se Trouver Ensemble (May 2014). Metroeconomica, Vol. 65, Issue 2, pp. 271-275, 2014, Available at SSRN: https://ssrn.com/abstract=2409374 or http://dx.doi.org/10.1111/meca.12039

Marc Jegers (Contact Author)

Free University of Brussels (VUB) - Micro-Economics for Profit and Non Profit Sector (MICE) ( email )

Brussels
Belgium
+32-2-629 21 13 (Phone)
+32-2-629 22 82 (Fax)

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