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View Full Version : Okishio's theorem



Unicorn
18th April 2008, 20:38
Does Okishio's theorem contradict the tendency of the rate of profit to fall?

Martin Blank
18th April 2008, 22:32
In a sterile and academic sense, yes. In the real world, no. Okishio's conditions for negating the tendency of the rate of profit to fall are unrealistic. They are like the conditions one can set up in a lab to "prove" an elephant can dangle from a cliff with its tail tied to a daisy.