Abstract

A variant of John Roemer’s accumulation economy is studied in which agents have identical payoff functions characterized by decreasing marginal impatience (DMI), such that time discount rates are decreasing in individual wealth levels. The implications of DMI for the existence and persistence of positive rates of profit and exploitation in the presence of capital accumulation, as well as for the dynamic redistribution of wealth, are derived. It is demonstrated that with DMI, differential ownership of productive assets is sufficient to ensure ongoing capital scarcity, and thus persistently positive rates of return and exploitation, as well as eventual redistribution of productive assets to the wealthiest agents.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.