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NEGATIVE SURPLUS VALUE AND INFERIOR PROCESSES *
Author(s) -
Hosoda Eiji
Publication year - 1993
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.1993.tb00787.x
Subject(s) - economics , commodity , value (mathematics) , surplus value , economic surplus , microeconomics , production (economics) , econometrics , mathematics , statistics , market economy , capitalism , politics , political science , welfare , law
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.