In 1894, Wicksteed published his celebrated " An Essay on the Co-ordination of the Laws of Distribution ", in which he sought to prove mathematically that a distributive system which rewarded factory owners according to marginal productivity would exhaust the total product produced.
32.
In his 1966 paper " Marginal Productivity and the Macro-Economic Theory of Distribution : Comment on Samuelson and Modigliani " Nicholas Kaldor introduced this relationship as part of his broader theory, co-authored by Luigi Pasinetti, of a macroeconomic theory of distribution that was non-marginalist.
33.
Although initially the debate was focused on the measurement of capital, more basic questions quickly began to emerge concerning the validity of the marginal productivities, given technology, competitive equilibrium and the production of a single good, the production function allowed getting three noteworthy conclusions:
34.
At point " N ", the curve shapes horizontally and this point N conforms to the point G in ( C, which shows the marginal productivity of labor ( MPP L ) curve, and with point s on the ridge line Ov in ( A ).
35.
However, Tainter is not entirely apocalyptic : " When some new input to an economic system is brought on line, whether a technical innovation or an energy subsidy, it will often have the potential at least temporarily to raise marginal productivity " ( p . 124 ).
36.
Those " classified " under the poor group are eligible for resettlement to a place not under the administration of towns with PSNP . Many of them were forced to resettle although the marginal productivity of both the mid wealth group and the poor group did not differ.
37.
So, even if in the range of Samuelso and Modigliani the rate of profit were to be determined by the marginal productivities ( and not by the Cambridge equation as in the general case ), its scope would be extremely limited, being confined to a quasi knife-edge range:
38.
He was further noted for producing a theory of interest and of profit in equilibrium based upon the interaction of diminishing marginal utility with diminishing marginal productivity of time and with time preference . and, with modifications including formal disregard for time-preference, by Wicksell's American rival Irving Fisher .)
39.
I think we're going to see more of that in the U . S . economy because pay rates over the past five years have now been squeezed so that they are running below the productivity curve and economic theory suggests that workers should be paid their marginal productivity contribution.
40.
The occupations that foreign unskilled workers fall into may in some cases actually be complements to the occupations of domestic unskilled workers, and, therefore, the work of the foreign unskilled workers could raise the marginal productivity of domestic laborers, rather than reduce their wages and employment rates as the traditional model predicts.
