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Book Cover
Author Mejorado, Ascension.

Title Profitability and the great recession : the role of accumulation trends in the financial crisis / Ascension Mejorado and Manuel Roman
Published London ; New York : Routledge, 2014
Online access available from:
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Description 1 online resource (xxii, 315 pages) : illustrations
Series Routledge frontiers of political economy ; 177
Routledge frontiers of political economy ; 177
Contents Cover; Profitability and the Great Recession; Title Page; Copyright Page; Table of Contents; List of figures; List of tables; 1 Introduction; The path to the Great Recession; Profitability: the missing link in Stiglitz's view of structural change; Stiglitz's valuable analysis: outside the mainstream, but not far off; Competition, mechanization, and profitability; Bifurcation of finance and nonfinancial corporate sectors; Excesses, bubbles, and the financial crash; Through the lens of political economy; 2 Kaldor's "stylized facts": real or merely convenient?; Introduction
From capital deepening to balanced growth pathsThe Corfu Round Table Conference; Kaldor's model of capital accumulation; Kaldor's alternative to neoclassical methodology; Kaldor's critique of neoclassical views on technical progress; Kaldor's own technical progress function; The primacy of investment over savings; Further reflections on Kaldor's "stylized facts"; Countering the Kaldorian constancies; Summary of main controversial points; 3 Innovations as competitive weapons; Beyond perfect competition; Free competition in Smith and Schumpeter; Innovational cycles
Innovating strategies of capitalist firmsOffensive vs. defensive innovations; Free competition in Freeman and Metcalfe; Evolution of competitive objectives; Celebrating the innovation machine; Profitability in Baumol's "arms race"; The enduring legacy of perfect competition; Technical progress and oligopolistic competition; 4 Mechanization and price/quality competition; Two kinds of competition?; Adam Smith on mechanization; Principles of scientific management; The advance of automation; Process innovations and unit labor costs; Economies of scale; Kaldor's "paradox" and quality competition
Operating leverage and competitive advantagePrice-cutting in competitive wars; Eltis on technical progress and profitability: Britain's case; The struggle for market shares; Flaws in Barrère's and Eltis' models; Eltis and Kaldor on Britain's industrial decline; Manufacturing profit rates in Germany, Japan, the UK, and US; 6 Heterodox models of technical change and profitability; Introduction; The Foley-Marquetti-Michl efficiency schedule; The nexus between profitability and the accumulation rate; Neoclassical and Marxian concepts of technical change
The decline in British industrial competitivenessHigh and low roads to competitiveness; The enduring legacy of Kaldor's "paradox"; Global competition and lower unit costs; The dual structure of global manufacturing; Quality ladders in global competitiveness; The false price/quality dilemma; 5 Capital intensity and profitability: dissenting views; Barrère's heterodox stance; Barrère's model of technical choice; Alternative profit-maximizing choices; The model's simplifying assumptions; Expanding revenues; Meek and Richardson's objections; An alternative strategy for lowest-cost firms
Summary From the mid-1980s, investors in the US increasingly directed capital towards the financial sector at the expense of non-financial sectors, lured by the perception of higher profits. This flow of capital inflated asset prices, creating the stock market and housing bubbles which burst when the imbalance between stagnant incomes and rising debts triggered the banking meltdown. Profitability and the Great Recession analyses these trends in profitability and capital accumulation, which the authors identify as the root cause of the financial crisis, in the context of the US and other majo
Bibliography Includes bibliographical references and index
Notes Online resource; title from digital title page (viewed on Nov., 2013)
Subject Capital movements -- United States
Profit -- United States.
Capital movements.
POLITICAL SCIENCE -- Political Process -- Political Advocacy.
United States.
Form Electronic book
Author Roman, Manuel.
ISBN 1134638493
Other Titles Role of accumulation trends in the financial crisis