Author

Tanya Moore

Date of Award

2015

Document Type

Thesis

Degree Name

Bachelors

Department

Social Sciences

First Advisor

Khemraj, Tarron

Keywords

Macroeconomics, United States, Capitalism, Profit Rate

Area of Concentration

Economics

Abstract

This thesis seeks to uncover determining factors of the behavior of the U.S. profit rate, which has exhibited a persistent downward trend for most of the 20th century. After neoclassical vs. Marxian theories of profit as well as a review of the profit rate literature are presented, a linear regression, utilizing an ARDL framework, tests for the potential impact of various macroeconomic variables. The final significant variables include the GDP growth rate, labor productivity, the interest rate, and the unemployment rate. The thesis concludes by considering the implications of these results for capitalist firms, with particular regard to labor productivity.

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