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The paper builds on the concept of (shifting) involvements, originally proposed by Albert Hirschman (1982). However, unlike Hirschman, the concept is framed in class terms. A model is presented where income distribution is determined by the involvement of the two classes, capitalists and workers. Higher involvement by capitalists and lower involvement by workers tends to increase the profit share and vice versa. In turn, shifts in involvements are induced by the potential effect of a change in distribution on economic activity and past levels of distribution. On the other hand, as the profit share increases, the economy tends to become more wage led. The dynamics of the resulting model are interesting. The more the two classes prioritise the increase of their income share over economic activity, the more possible it is that the economy is unstable. Under the stable configuration, the most likely outcome is Polanyian predator–prey cycles, which can explain some interesting historical episodes during the twentieth century. Finally, the paper discusses the possibility of conflict and cooperation within each of the distribution-led regimes.

Amaç – Katılım bankalarının uyguladığı fon kullandırma yöntemleri içerisinde murabaha’nın payı %90’ı aşmaktadır. Söz konusu yöntemle ilgili olarak en çok yapılan tartışma ise bu bankaların fon kullandırmada uyguladıkları vade farkının geleneksel bankaların uyguladığı faiz oranıyla hemen hemen aynı seviyelerde olduğu ve aynı yönde seyrettiğidir. Bu bağlamda çalışmamızda hem bu iddianın ekonometrik olarak test edilmesi hem de bu olgudan hareketle murabaha yönteminin faizli kredi benzeri olduğu iddialarına ilişkin bir değerlendirme ve öneri yapılması amaçlanmıştır. Yöntem – Bu amaçla katılım bankaları ortalama 1, 3, 6 ve 12 ay vadeli kar payı oranları, geleneksel bankalar 1, 3, 6 ve 12 ay vadeli ağırlıklı ortalama mevduat faizi oranları, TÜFE ve USD/TL döviz kuru arasındaki ilişki yapısal kırılmaları dikkate alan tek kırılmalı eşbütünleşme ve Fourier Granger nedensellik analizleriyle test edilmiştir. Analiz için kullanılan veri seti Ocak 2003 ile Ocak 2018 dönemini kapsayan aylık verilerden oluşmaktadır. Bulgular – Seriler arasında eşbütünleşme ilişkisi olmadığı gözlenmiştir. 1, 3, 6, 12 ay vadeli mevduat faizi oranlarından 1, 3, 6, 12 ay vadeli kar payı oranlarına doğru aynı vadelerde tek yönlü nedensellik ilişkisinin olduğu ve USD/TL döviz kuru ile TÜFE’den kar payı oranlarına doğru nedensellik ilişkisi olmadığı görülmüştür. Tartışma – Katılım bankalarının faiz riskine maruz kaldığı, bu riske karşı önlem alması gerektiği ve faizden kaçınmak isteyen katılım bankalarındaki mevduat sahiplerinin de karar verirken TÜFE ve USD/TL döviz kuru makroekonomik değişkenlerinden ziyade faizi göz önünde bulundurması gerektiği belirtilebilir. Çalışmada, katılım bankaları vade farklarının geleneksel bankaların faiz oranlarıyla aynı yönde hareket etmesi ve hemen hemen aynı olması ile ilgili bir değerlendirme de yapılmıştır. Konuyla ilgilenenlerin çoğu ‘murabaha’ yönteminin aslında faizsizlik iddiasına uymadığını ileri sürmektedir. Çalışmada ise bu olguya ters yönden de bakılabileceği, dolayısıyla devletin sıkı düzenlemeleri ve denetimi altında çalışan geleneksel bankalardaki mevduat ve kredi faizinin riba olup olmadığının tartışılması gerektiği belirtilmiştir. Purpose – The share of murabaha among the funding methods applied by participation banks exceeds 90%. The most common discussion regarding the method in question is that the maturity difference applied by these banks in the use of funds is almost at the same level with the interest rate applied by traditional banks and it is in the same direction. In this context, in this study, it was aimed to test this claim econometrically and to make an evaluation and suggestion regarding the claims that the murabaha method is like a loan with interest, based on this fact. Design/Methodology/Approach – The relationship between profit share rates and deposit interest rates, the CPI and the USD / TL exchange rate has been tested with single-break cointegration and Fourier Granger causality analyzes considering structural breaks. For this purpose, participation banks average 1, 3, 6 and 12-month dividend rates, traditional banks 1, 3, 6 and 12-month maturity weighted average deposit rates, the relationship between CPI and USD / TL exchange rate has been tested with single-break cointegration and Fourier Granger causality analyzes considering structural breaks. The data set used for the analysis consists of monthly data covering the period January 2003 and January 2018. Findings – It was determined that there was no cointegration relationship. It is determined, that there is one way casuality relationship from deposit interest rates in 1, 3, 6, 12 month(s) maturities to profit share rates in 1, 3, 6, 12 month(s) maturities in each maturity levels and there is no causal relationship between USD / TL exchange rate and CPI to profit share rates. Discussion – It can be stated that participation banks are exposed to interest risk, they should take measures against this risk, and depositors in participation banks who want to avoid interest should also consider interest rate rather than macroeconomic variables of CPI and USD / TL exchange rate when making decisions. In the study, an evaluation has been made about the fact that the interest rates of participation banks move in the same direction with the interest rates of traditional banks and are almost the same. Most of those who are interested in the issue argue that the "murabaha" method does not actually comply with the interest-free claim. In the study, it was stated that this phenomenon can be viewed from the opposite side, so it should be discussed whether the deposit and loan interest rates in traditional banks operating under the strict regulations and control of the state should be discussed.

There is evidence that labor intensity is endogenous to wage compensation and that inter- and intra-industry wage differentials are non-negligible and persistent. We explore the implications of firms periodically choosing between alternative wage compensation strategies to extract labor from labor power more effectively. The frequency distribution of labor extraction strategies across firms is endogenously time-varying as driven by satisficing evolutionary dynamics that generate wage inequality as a stable long-run equilibrium under plausible conditions. Firms willing to extract more labor from labor power remunerate workers with a higher wage. Yet a larger proportion of firms following such strategy does not necessarily result in a lower (higher) unit labor cost (profit share) and hence in higher rates of profit and saving-determined output growth. The larger the proportion of firms that attempt to extract more labor from labor power by remunerating workers with a higher wage, the less these firms are successful. This result can be seen as characterizing another contradiction of the capitalist economy.

International audience; The empirical literature on Kaleckian growth and distribution models consists almost exclusively of studies of developed countries. These studies have used varied econometric techniques and estimation methods, but little attention has been given to developing countries. Onaran and Galanis (2013) provide an extensive review of this literature, and they complement it by estimating models for some developing countries. However, owing to lack of data they were unable to estimate their model for Brazil. This paper expands the empirical literature by applying it to Brazil. The Brazilian demand regime is analysed for the period of 1956–2008, using functional distribution of income data supplied by Adalmir Marquetti (which was developed in a paper by Marquetti et al. 2010). The paper estimates the open-economy Bhaduri–Marglin model using the single-equation technique outlined in Hein and Vogel (2008). The results of the estimation show that the demand regime in Brazil is wage-led domestically despite being an open economy. Consequently, increases in the profit share tend to diminish demand. The paper concludes with some policy implications of the findings.

We analyse the interaction of demand and income distribution in a dynamic Kaleckian model with endogenous natural output. Endogenous changes of the natural output level to changes in the demand‐determined actual output level have featured prominently in discussions of hysteresis after the crisis of 2008. We consider wage‐led and profit‐led demand (PLD) regimes and goods market‐led and labour market‐led income distribution regimes. The stability of the steady state is related to the endogeneity of natural output level in certain regimes. Limit cycles arise when the strong flexibility of prices or wages to the output gap is combined with moderate natural output hysteresis. A Kaleckian model with a wage‐led demand regime and anticyclical profit share is less unstable and pseudo‐Goodwin cycles can arise in the PLD regime with a procyclical profit share.

We analyze an agency model of project choice and implementation where the agent is held accountable for his performance. We show that implementation of the ex ante efficient project may be impossible, irrespective of how the principal sets fixed wage and bonus rate. If it is possible, the principal may be forced to increase the bonus rate above the optimal project‐specific rate. The higher profit share compensates the agent for pressure he faces when he has to justify/explain his performance.

This paper studies the origin of Piketty’s inequality between the profit rate (r) and the growth rate of the national income (g) by focusing on the growth rate (γ) of the r / g ratio in an economy that grows gradually along a succession of production cycles. It is shown that, given a succession of three production cycles, the value of γ in the last cycle is determined by the equation 1+γ=(1+v)(1+k) where v is the growth rate of the profit share (α) in the last cycle while κ is a function of three variables: the income/capital ratio of the last cycle, the values of the savings rate in the first two cycles and those of the growth rate of the income/capital ratio in the last two. The equation just presented is also relevant for a succession of more than three production cycles for which the yearly values of r, g and α are known. Indeed, in this case it is possible to calculate the average values of γ and v from the empirical data, which then can be used in the equation to determine the average value of κ. Once the three variables are known, it is possible to calculate the parts attributable respectively to the average values of v and κ in the determination of the average value of γ. A similar result is obtained regarding the part attributable to the average changes in the savings rate and in the growth rate of the income/capital ratio, taken together, in the determination of the average value of κ. The paper also identifies those configurations of the relevant variables where γ > 0 out of which, when the succession of production cycles is long enough, results the inequality r > g.

The popularity of Islamic banking is increasing day by day. On the other hand, some people also criticized this system in some aspect. One of the criticism is that profit sharing rates of Islamic banks are similar to interest rate of deposit banks. While considering this issue, this study aims to identify the causality relationship between profit sharing rate and interest rate in Turkey. Within this scope, monthly, quarterly, 6-months and yearly data for the period between 2000 and 2016 was analyzed separately. In addition to this situation, Toda Yamamoto causality analysis was used in this study so as to achieve this objective. According to the results of the analysis, it was determined that there is a significant causality relationship between these rates. In other words, it was concluded that interest rate of the deposit banks is the main indicator of the profit share rate of Islamic banks in Turkey. The main reason behind this situation is that indicators in the market affect both deposit banks and Islamic banks. Therefore, it is inevitable that deposit rates and profit share rates will be similar when deposit banks and Islamic banks perform in the same market.

The article defines the nature of income, expenses and profit from the activities of enterprises for innovation and technological development; feasibility of establishing the net profit within their fund, out of which consumer share is to be used as bonus payments for employees. It is suggested to use the graph theory for providing the efficiency of innovation and technological activities in manufacturing enterprise. Methodological provision is grounded for calculating bonus payments for employees of enterprises ensuring innovation and technological development, У дослідженні визначено: сутність доходів, витрат та прибутку від діяльності з інноваційно-технологічного розвитку підприємств; доцільність створення у складі чистого прибутку їх фонду, з якого споживчу частину використовувати для преміювання працівників. Запропоновано використання теорії графів для встановлення ефективності інноваційно-технологічної діяльності промислового підприємства. Обґрунтовано методичне забезпечення розрахунку преміальних виплат працівникам підприємств, що забезпечують інноваційно-технологічний розвиток

This research aimed to analyze the behavior in smallholder cocoa marketing agencies in Sempu Village Banyuwangi District. The choice of Jambewangi Village was intentional because there was lots of cocoa farming and known with good quality. Data were taken from 50 farmers of the group member who were chosen randomly. Data were analyzed using descriptive and analytic methods. The results showed that there were two marketing channels with a margin of USD 0.57 and USD 0.66. Channel I was more efficient because it had a small margin and more equal profit share and cost. The characteristic of each channel was different seen from the application of quality variance, pricing and payment system, marketing system.

One method for explaining the crisis in Spain is looking to the sphere of income distribution. Given the peripheral insertion of Spain in the Eurozone, there are peculiarities that have given rise to opposing theories. Thus, orthodox economists blame the labor market rigidity for the excessive increase in wage costs, which would have caused higher inflation and loss of business competitiveness. But interestingly, Keynesian-inspired economists argue on the contrary that low wages are responsible for the speculative bubble due to the demand problem. Although seemingly contradictory, the author not only emphasizes that both explanations share common aspects, but empirically demonstrates that the cause of the crisis is not found in the wage determination. Spanish wages ultimately depend on the process of capital valorization, as the comparison with the Eurozone clearly reveals.

Motivative augmentals are rules or statements that temporarily change the effectiveness of a consequence, similar to establishing operations for nonverbal consequences (Hayes, Barnes-Holmes, & Roche, 2001). Many communications by an organization's leadership may function as such and alter the function of stimuli in the workplace, which in turn may influence employee behaviors (Houmanfar & Rodrigues, Journal of Applied Radical Behavior Analysis, N1, 22–27, 2012). There is a lack of experimental research regarding this, however, particularly under different organizational pay systems (i.e., financial contingencies), which have been repeatedly shown to influence performance (e.g., Gupta & Shaw, Compensation and Benefits Review, 30(2), 26–32, 1998; Locke, Feren, McCaleb, Shaw, & Denny, 1980). The current study sought to compare the two by measuring the effect of motivational statements on individual versus cooperative responding under two different pay-for-performance contingencies in an organizational analogue. Stimuli for the motivational statements were selected utilizing an Implicit Relational Assessment Procedure (IRAP) with one group of participants, and these statements were then tested under piece-rate and profit-share conditions with a second group of participants in a counterbalanced reversal design. Results indicated that the financial contingencies had more of an effect on responding, but that motivational statements influenced behavior as well. In particular, motivational statements affected whether a participant chose to cooperate or behave individually more under financially neutral conditions (i.e., profit share) when there was no financial cost for doing so. As such, organizations can utilize memos or speeches to increase performance, but it is important for the content to align with financial contingencies in order to maximize performance.

Penelitian ini bertujuan untuk mengetahui pelaksanaan system bagi hasil dan system upah yang diterapkan pada usaha perikanan Gill Net di Pantai Trisik kabupaten Kulon Progo, untuk mengetahui tingkat BEP yang diterapkan sebagai batasan dalam menentukan pelaksanaan system bagi hasil dan untuk membandingkan antara system upah dan system bagi hasil yang diperoleh nelayan dan pemilik kapal dengan UMR yang ada di daerah Yogyakarta. Penelitian ini dilaksanakan di Pantai Trisik Desa Banaran, Kecamatan Galur, Kabupaten Kulon Progo pada awal bulan Agustus sampai dengan awal bulan Nopember 2017. Metode yang digunakan dalam penelitian ini meliputi metode study kasus, pengambilan sample, pengumpulan data dan analisa data. Dari hasil penelitian ini menunjukan bahwa pendapatan yang diterima oleh ABK Rp. 2.284.000,- per bulan dan Rp.10.420,- per jam , Pendapatan Nahkoda Rp.6.602.000,- per Bulan dan Rp.300.420,- per hari atau Rp. 37.552,- per jam. Namun untuk karyawan di Perusahaan mendapat penghasilan Rp. Rp.1.144.812,- per Bulan dan Rp. 38.160,- per hari serta Rp.4.770,- per Jam. Dengan demikian lebih menguntuingkan system bagi hasil pada usaha perikanan Gill Net monofilament di Pantai trisik kabupaten Kulon Progo bila dibandingkan dengan UMR tahun 2017 yang ada di daerah itu, sebesar Rp. 1.373.600

This paper discusses the corruptive action widespread in the organizations’ worker recruiting: favoritism and bribery. The managers of the firm are actually able to discern the type of the productivity of the job-seekers, but they utilize the information advantage through the two types of misconduct—favoritism and bribery, at the expense of the profit share of the principal (the owner) and the workers’ wage rent. The key conclusion is drawn from this paper as follows: neither the intensity of favoritism nor the wage level matters in determining whether there’s profit or loss in the firm, whereas the key variable is the relative situation of exterior labor market.

The paper aims to elaborate the theory of factor pricing and income distribution in Islamic perspective. We place Sadeqs thought as the benchmark and expand it. Using calculus differential, we construct factor pricing and income distribution under mudharabah scheme, which can describe the behavior of producer (mudhaarib) in making decision on business operation appropriately. The paper can prove mathematically that when Islamic principles are internalized, income distribution becomes more equal. This is expressed in parameters s, 1-s, and 1/1-s, as a share of profit goes to capital owner (shahibulmaal), entrepreneur (mudhaarib) and worker, respectively. The paper also proposes that wage level will be determined not only by perception or the mind set of capital owners and workers on the value of their assets, but also the standing moral of entrepreneurs and capital owners.

Building on Marx’s insights in Chapter 25, Volume I of Capital, an augmented version of the cyclical profit squeeze (CPS) theory offers a plausible explanation of macroeconomic fluctuations under capitalism. The pattern of dynamic interactions that emerges from a 3-variable (profit share, unemployment rate and nonresidential fixed investment) vector autoregression estimated with quarterly data for the postwar U.S. economy is consistent with the CPS theory for the regulated (1949Q4--1975Q1) as well as for the neoliberal periods (starting in 1980 or in 1985). Hence, the CPS mechanism seems to be in operation even under neoliberalism.

We study a standard two-period economy with one nominal bond and one firm. The firm finances the input with the nominal bond in the first period and its profits are distributed to the shareholders in the second period. We show that in the neighbourhood of each efficient equilibrium, a sunspot equilibrium also exists. It is shown that the equilibrium interest rate is lower than the efficient level and that there is overproduction in the sunspot equilibrium, under some conditions. However, there is no sunspot equilibrium if the profit share of the firm can be traded as well as the bond.

This paper examines how variable output and profit share jointly determine investment and saving, while the difference between investment and saving drives the changes in output and profit share. Analysis of the resulting pair of differential equations yields novel implications for the multiplier process. In this more general framework a number of separate strands of the Keynesian-inspired literature can be understood. In particular, the model incorporates both forced saving and profit squeeze to analyse the stability of the dynamical system, and brings out the complex relation between in and out-of-equilibrium profit-led and wage-led regimes.

This paper explores some implications for valuation and investment of challenging the standard assumption that there are no aggregate pure profits in the US economy. First, it highlights the theoretical importance of monopoly rents for fluctuations in average Q. A series for such rents is then computed by assuming that production is Cobb-Douglas, as fluctuations in the output share of pure profits may be inferred from variations in the labor share. Consequently, the paper focuses on the correlation between a measure of rents and observable average Q. It also reassesses the empirical disconnection between investment and a measure of marginal q purged of monopoly rents. The paper finds that the existence of pure profits as constructed from unit labor costs only accounts for about 5% of fluctuations in observed Q, and alters only minimally the empirical relationship between q and investment.

Financing in Sharia Micro Financing Institutions (BMT) is dominated by certainty contracts, as it has less risk than syirkah contract like Mudharabah or Musyarakah based on Natural Uncertainty Contract (NUC). Implementation constraints syirkah contracts exist on both parties, financial institutions and clients. due to lack of financial reports, honesty and transparency of the client's business (asismetric information). The Client gives a business report if the results obtained are small or equivalent to the bank interest rate, but if the business profit is good, then the profit share must be high. This research is a qualitative descriptive analytical research, to see the implementation of syirkah contract on Sharia Micro Finance Institution (BMT) in Jepara Regency and its syariah compliance based on DSN-MUI fatwa. The results showed that BMT in Jepara regency can not fulfill the compliance of shariah contract of Natural Uncertanty Contract (NUC) due to high risk, human resource capability and low comprehension and lack of client's financial report.

This paper extends the fossil production function to incorporate embodied technical change. The fossil production function provides an alternative to the standard neoclassical explanation for the aggregate production function. In a Classical Ricardian spirit, the paper assumes that capital-using, labour saving technical change prevails, and shows that it generates a fossil production function in Cobb-Douglas form. The power term of the production function mediates the viability of new machines. A sufficient condition for viability is that the power term equals or exceeds the profit share on new machines. Empirical estimates show that this sufficient condition is satisfied, a result inconsistent with the neoclassical interpretation of the aggregate production function.

Seaweed in Warbal Village, West Kei Kecil Subdistrict, Southeast Maluku Regency has prospects and business opportunities are adequate to give hope to farmers in improving welfare. The fact that seaweed farming has not yet provided better and maximum results as desired by the farmers. This study aims to evaluation the marketing channels, marketing margins and profit share of marketing agencies. The research is located in Warbal Village, West Kei Kecil Subdistrict, Southeast Maluku Regency which is determined purposively. The number of sample is 30 farmers taken by simple random sampling, 2 wholesaler traders and 2 collector traders taken by using snowball method. The data collection methods is interview and questionnaire directly to farmers and marketing agencies, literary method or data collector from institutions related to the research's aims. The research results show that there is two marketing channel, as follows: Channel I: farmers, wholesaler traders, collector traders, PAP; Channel II: farmers, collector traders, PAP. The magnitude of marketing margins is different between the marketing channels, and so it is with profit share of a marketing agency. On channel I, magnitude margin is IDR 3,250 and profit share is 71.11% on farmers, 17.76% on wholesaler traders and 11.09% on collector traders. On channel II, the magnitude of marketing margin is IDR 1,250 and profit share is 88.88% on farmers and 11.09% to collector traders.

The purpose of this research is to explore the concept of dlaman (the responsibility) in the field of Syariah Banking. The concept refers to business investment based on the principle of profit share. In this sense, joint venture is a running business in which the risk account will be mutually responsible. Furthermore, related to financial loss, the capital loss is not the responsibility for such a manager, this is in the case if the manager is not careless or improper on his/her duty. This research applies the library approach concerning the classical and modern books to construct the concept of dlaman in the field of syariah banking. The result of research indicates that the role of Syariah Banking is not same with the role of mudlarib (investor manager) as the case of conventional mudlarabah (mudlarabah tsunaiyyah). In the classical books, the system of conventional mudlarabah regulates simply for the concept of profit share between two people namely: investor (shohibul mal) and mudlarib. Meanwhile, in fact the syariah banking can be act as mudllarib for saving customer as well as shohibul mal for financing customer. While, the role of Syariah bank to carry out the financial saving for society can be seen as mudlarib intermediary.

The joint determination of wages and the profit share rate is considered in a right to manage model of collective bargaining. This model encompasses different labour market models. It is shown for example that the profit share rate is determined solely by and depends positively on the bargaining power of the union and the union's concern for the level of unemployment. i.e. the degree of the union's concern for unemployment may explain why profit sharing is not more common.

Back in Cambridge, Kaldor soon resumed old friendships. ‘For many years’, Ferdinando Targetti records, ‘the Kaldors, Sraffa, [Joan] Robinson and Kahn spent their summer holidays together in the Alps and the Scandinavian mountains: with long walks for the Kaldors and adventurous climbs for the others’ (Targetti 1992, p. 13). Inevitably economics was discussed, abroad and at home on the regular Sunday walks from Cambridge to Grantchester. It would be a slight exaggeration to say that when Kaldor took up his fellowship at King’s he had been away from economic theory for almost a decade. For one thing, he had continued to lecture on the theory of employment, and also on value and distribution theory, on which he applied the ‘history of thought’ perspective that was common then. Hugh Dalton was told that his lectures were ‘a Box Office draw’, comparable to those of the celebrated Noel Annan (Dalton 1986, p. 576).

We analyse the effects of interest rate variations on the rates of capacity utilisation, capital accumulation and profit in a simple post-Kaleckian distribution and growth model. This model gives rise to different potential accumulation regimes depending on the values of the parameters in the investment, saving and distribution function. Estimating these core behavioural equations for the US and Germany in the period 1960-2007, we find significant and robust effects of interest payments with the expected sign in each of the equations. Our estimation results imply, both for the US and for Germany, that the effects of changes in the real long-term rate of interest on the equilibrium rates of capacity utilisation, capital accumulation and profits are characterised by the ‘normal regime’: Rising long-term real rates of interest cause falling rates of capacity utilisation, capital accumulation and profits, as well as redistribution at the expense of labour income and hence an increasing profit share in both countries.

This study explores the factors driving the observed movements of the profit share in several major industrialised countries (France, Germany, United States, United Kingdom and Japan) over the period 1970-2000. Within the group of countries we study, both the level and the fluctuations of the profit share strongly depend on the self employment correction. Due to long process of adjustment of the production factors and the real wage, the econometric long term corresponding to the span of the data appears to be too short to be considered as an economic long term. Within such a limited period, profit share could then be influenced by the real interest rate and also by external terms of trade shocks and keynesian disequilibriums on the goods or the labour markets.

One line of thought on reforming state-owned enterprises (SOEs), the ownership school, stresses diversifying ownership to eliminate government control. A second line of thought, the management school, emphasizes the need to improve government’s management of SOEs by, for example, granting SOE employees the autonomy and profit incentives. Utilizing data on 680 SOEs in China, over 1980-94, we tested the relative effectiveness of two kinds of reform measures. Our results yield strong support for the ownership school and very mixed evidence for the management school. Moreover, we found that the impact of ownership diversification on SOEs’ economic performance was as strong as that of enhancing product-market competition.

Discusses performance‐related pay schemes, highlighting their importance in stimulating individuals to higher levels of achievement. Explores how the engineer, the academic, the politician and the grocer′s daughter have all contributed to the present attitude towards reward and motivation. Outlines what exactly is rewarded and how, company‐wide profit share schemes are designed to promote greater acceptance of the profit motive and a climate of co‐operating and working together. Reviews six principles of reward and concludes with the views of the critics.

The conception of a limit cycle was formulated towards the end of the last century. A practical, usable form was first developed by van der Pol and widely used in the physical sciences. The first qualitative model in economics was proposed by Kalecki in the early thirties but, being linear, was seriously criticized by Frish on the grounds that it was structurally unstable. Then came the dramatic impact of the Keynes General Theory, which led to an altered perception of the problem.

The Gaskins and Vann (G and V) hypothesis assumes that information gained during joint-bidding negotiations is used to increase the chances of winning on other OCS lease tracts. A review of the G and V model concludes that it lacks empirical content and finds all competition to be equal. The trend of legislative and administrative events that began with the joint bidding ban continues with various unconventional techniques, such as royalty bidding and fixed-net profit share bidding. To the extent that these unconventional systems are meant to be mechanisms for correcting anticompetitive bidding abuses of the traditional bonus bid, the rejection of G and V's information hypothesis suggests that these new systems may be unnecessary. 21 references, 5 tables.

This chapter will examine the compatibility of democracy with the capitalist economic system under which we live. After examining what we mean by democracy and capitalism we will conclude that there are fundamental incompatibilities. We will proceed to consider how democracy is on the retreat as the concentration of economic power tends to grow. Our focus will be on the growth of giant firms, the increase in trans-nationalism in the control of production and markets and the accompanying centripetal tendencies in the control of economic power. Whilst these are general issues, they impinge most immediately on our democracy via the communications sector and therefore some specific developments in this sector will be subjected to particular scrutiny. The question will then be posed as to whether the diminution of democracy is required for economic efficiency. It will be argued that rather than there being a trade-off between these two desirable ends, greater real democracy will contribute to the attainment of superior economic performance, and this could be particularly true in the case of our own country. Institutional changes to secure an extension of democracy within our society will be identified. These will include measures to limit and control existing centres of economic power and initiatives to democratise work and the investment process.

During the last few years there has been a gradual shift from emphasis on aggregate demand policy to emphasis on supply or cost factors as a determinant of the rate of inflation in the Scandinavian countries. This shift seems to have been accelerated by publication by Aukrust [1], [2] for Norway and Edgren, Faxen and Odhner [5], [6] of an analysis of inflation, sometimes called the “EFO model” in Sweden, that makes the rate of inflation “structurally determined” from the supply side of the economy. This view is now drawing international attention, as evidenced by the citations noted in section II below.