Politická ekonomie 2022, 70(2):193-208 | DOI: 10.18267/j.polek.1342

Analysis of the Law of Falling Rate of Profit: European Case

Víctor M. Fernández-Aguilera ORCID...a, Ignacio Amate-Fortes ORCID...a, Almudena Guarnido-Rueda ORCID...a
a Universidad de Almería, Faculty of Economics and Business, Spain

This work aims to analyse the existence or non-existence of a decreasing rate of profit in Europe and determine the factors influencing it according to the Marxist theory of profitability. To do so, a panel data model was estimated for seven European countries over more than 60 years (from 1960 to 2021, inclusive). The results obtained allow us to verify the tendency for profitability to fall, which could lead the capitalist system to fail.

Keywords: Marxian economics, falling rate of profit, panel data analysis
JEL classification: B51, C23, E11

Received: January 31, 2021; Revised: December 31, 2021; Accepted: January 4, 2022; Published: May 9, 2022  Show citation

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Fernández-Aguilera, V.M., Amate-Fortes, I., & Guarnido-Rueda, A. (2022). Analysis of the Law of Falling Rate of Profit: European Case. Politická ekonomie, 70(2), 193-208. doi: 10.18267/j.polek.1342
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