The aim of this study is to analyze the content of "the Theory of Distribution" in Part One of Adam Smith`s Wealth of Nations, and to investigate its significance in the history of economic doctrine. The major subject of Adam Smith`s "...
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다국어 초록 (Multilingual Abstract)
The aim of this study is to analyze the content of "the Theory of Distribution" in Part One of Adam Smith`s Wealth of Nations, and to investigate its significance in the history of economic doctrine. The major subject of Adam Smith`s "...
The aim of this study is to analyze the content of "the Theory of Distribution" in Part One of Adam Smith`s Wealth of Nations, and to investigate its significance in the history of economic doctrine.
The major subject of Adam Smith`s "the Theory of Distribution" is to examine the elements of fluctuation after deciding the natural rate of three sourses of earnings such as wages, profits, and rent. It should be noticed that natural rate is neither constant nor absolute. While natural price is established by the natural rate of wages, profits, and rent, natural rate is determined by common situation of society.
His theory of wages is determined by subsistence expenses, and wage-fund theory that its real rate is determined by wage-fund. He also said that high wages increase natural rate of wages is determined by subsistence expenses, and wage-fund theory wealth of nations in consideration of the wages of laborers.
In profit theory he regarded profits as surplus value one hand and as natural fruit by the use of capital on the other hand. As he thought of average profits as natural profit rate, and he thought that fluctuation of profit rate is propotioned to the change of interest rate, he believed that profit rate could be estimated from the interest rate of money.
In the theory of rent is regarded as absolute rent when it is considered a monopoly price resulted from the private ownership of land, and regarded as differential rent when it is considered as the result of price.
But there will be contradiction if rent is considered deduction of labor products on one hand and considered the constituents of goods price on the other.
As mentioned above Adam Smith` Theory of Distribution is estimated to be the most dissatisfied part of his hard work. This is that he focused his study on production at that time (around 1776) and that he added distribution matter influenced by physiocracy and that he didn`t consider it deeply.
His contribution, however, is the fact that no one, ever before, described theory of distribution in such a skillful manner as he. As it is concluded that his "Theory of Distribution" is still looked on as a classic and exellent one, more study on this matter is expected.
목차 (Table of Contents)