More documents from Kurz, Heinz D.
More documents from Journal of Economic Behavior & Organization

Export to your Reference Manger

Please Copy & Paste



Bookmark and Share

Innovations and Profits Schumpeter and the Classical Heritage

[journal article]

Kurz, Heinz D.

fulltextDownloadDownload full text

(2083 KByte)

Citation Suggestion

Please use the following Persistent Identifier (PID) to cite this document:

Further Details
Abstract The paper discusses the problem of innovations and profits from a Schumpeterian perspective using the analytical tools of modern classical economics. The concept of “circular flow” is formalised and Schumpeter's zero-profits assumption investigated. Next a typology of process innovations is discussed using a simple two-sector framework. In Schumpeter profits are transitional phenomena. In the conditions contemplated, increases in labor productivity will lead to rising real wages. The argument is generalized to product-cum-process innovations in systems with joint production where a bad that is costly to dispose of is transformed into a good that can be marketed profitably.
Classification Sociology of Economics; Basic Research, General Concepts and History of Economics
Free Keywords Classical economics; Competition; Inventions; Innovations; Profits; Schumpeter; Technical progress; Unintended consequences; Wages; Waste disposal
Document language English
Publication Year 2008
Page/Pages p. 263-278
Journal Journal of Economic Behavior & Organization, 67 (2008) 1
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)