On the Malthusian theory of long swings
Waterman, A.M.
Canadian Journal of Economics. Revue Canadienne d'Economique 20(2): 257-270
1987
ISSN/ISBN: 0008-4085 PMID: 12315206 DOI: 10.2307/135360Document Number: 353746
"In the Essay on Population economic growth consists of alternating surges of population (during which real wages fall and the rate of profit rises) and capital (during which the reverse occurs). A series of temporary equilibria exists at which wages are maximal, the rate of profit minimal, and fully employed work-force in technically determined relation to fixed capital stock. Between these equilibria occur episodes of excess labour, below-maximum wages, above minimum profit-rate and capital accumulation. Malthus's 'ratios' presuppose a logarithmic production function that implies first, that the full-employment real wage will fall to subsistence; secondly, that the full-employment 'wages fund' is constant." (SUMMARY IN FRE)