NEGATIVE SURPLUS VALUE AND INFERIOR PROCESSES

Eiji Hosoda

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

One of the most interesting results in value theory is that positive profits are consistent with negative surplus value. This result is obtained, using a two‐commodity linear model with joint production. Since existence of an inferior process is always implied in a two‐commodity model, the result has been supposed to be applicable to a limited type of technology. The purpose of this paper is to show that positive profits with negative surplus value do not necessarily imply the existence of such a process in higher dimensions. Although a different type of inferiority is implied, such a definition of inferiority is quite different from what is normally understood.

Original languageEnglish
Pages (from-to)29-42
Number of pages14
JournalMetroeconomica
Volume44
Issue number1
DOIs
Publication statusPublished - 1993 Feb

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ASJC Scopus subject areas

  • Economics and Econometrics

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