Malthus and Ricardo on the determinants of the rate of profit

ABSTRACT

This paper examines the controversy between Malthus and Ricardo about the determinants of the rate of profit. It suggests a stylized model which allows a differentiation between the “limiting principle” and the “regulating principle” Malthus proposed. It also comments on selected quotations from texts by Malthus, Ricardo and Keynes.

KEYWORDS:
Profit rate; Malthus; Ricardo