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Euler's Theorem and the Problem of Distribution

Опубликовано на портале: 02-10-2003
Economic Journal. 1934.  Vol. 44. No. 175. P. 398-414. 
It is characteristic of the development of the economic theory that proposition which appears very simple when we have arrived at them should be first sighted through a haze of ambiguities and approached only by a labyrinth of devious controversy. On this curious process the history of the famous "adding-up problem" provides a strikimg examples. As soon as it began to be asserted that factors of production are paid in accordance with their marginal products, the problem was posed: How do we know that, if each factor is paid its marginal product, the total products is disposed of with out residue, positive or negative? Of course it is obvious that in any case the total products is distributed among the factors of production.

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