Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

M. G. K. Reddy , S. Venkateswara Rao

Abstract

The object of this paper is to analyse how far the marginal productivity theory of distribution explains the relative shares of factors of production in the aggregate net product of the large-scale manufacturing sector in India. It is confined to the period 1946-57. As in the macro-economic formulation of the theory, only two functional categories are recognised - the wage-earners and salary-earners, on the one hand, and the capitalists, claiming the residual product, on the other.

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S. Venkateswara Rao

Abstract

Viner lists out some of the sources of downward bias, that are likely to be present in the estimation of price-elasticities of demand. In the first place the data should be adjusted for long-term and cyclical variations in the demand function. Trends in the import demand may follow much more faithfully trends in domestic economic activity than price-level fluctuations. In cyclical situations prices and demand are more often positively associated.

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