Re Fred's [6091]: > In mainstream macroeconomics (in all its versions), profit is not even a > variable in the theory! Similarly, in mainstream macro analyses of > recessions, profit is almost never mentioned, certainly not in academic > journals. I guess it depends on how you define 'mainstream'. Two arguably 'mainstream' schools which include a role for profits as a major variable are: 1) the Austrian strand of marginalism: didn't Bohm-Bawerk, Menger, von Mises, etc. all incorporate profit into their basic macro theory? 2) 'Supply-side' economic theory: isn't the level of corporate profits a crucial variable in that theory that leads to changes in the level of investment and then aggregate supply? In solidarity, Jerry
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