A Computational Approach to the Marxian Circuit of Capital Model

Document Type

Article

Publication Date

1-4-2025

Identifier/URL

41956850 (Pure)

Abstract

The paper reconstructs the Marxian circuit of capital model to identify distinctive growth dynamics of the financial, productive, and commercial capital stock, which are primarily induced by the change in both the three capital flows and the time-lags tied to each capital flow. The simulation shows that there exist nonlinear interactions among the three capital stocks associated with the change in both three capital flows and the time lags required for the circuit of capital. The paper also attempts to account for the effect of financialization and the realization crisis on the growth dynamics of the economic system. The simulation result indicates the presence of divergent ‘growth regimes.’ in which delays in either mobilizing financial capital outlay or delays in realization of surplus value alters the composition of the total capital stock as well as the nature of growth of the domestic productive capital stock.

DOI

10.1007/s43253-024-00142-0

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