SCEPA and INET are proud to present an online economics class - advanced microeconomics - taught by Duncan Foley, the Leo Model Professor of Economics at The New School. The series includes videos of 14 class lectures, including Professor Foley's presentations and discussions with students.
Class 12: Social Coordination Problems in Marxist Political Economy (Part B)
Marxist theory of the falling rate of profit could be boiled down to a simple phrase: “When each individual capitalist seeks to raise her individual profit by the means of technologies, the collective outcome of this type of competition will result in downtrend of the overall rate of profit”. At first, the lecture expands on the way one could demonstrate numerically the same ideas using the social interaction model. Then the underlying reasoning of the Okishio theorem serves only as one specific case of this model. The second part of the lecture accentuates Marx’s alienation theory, examining the case of its correspondence with the concept of Cournot-Nash equilibrium. The lecture concludes with the introduction into Keynesian theory.
Advanced Microeconomics: Information and Behavior in Political Economy | Lecture 12 Social Coordination Problems in Marxist Political Economy (Part B) | Duncan Foley | Leo Model Professor of Economics at the New School for Social Research | Spring 2016