THE UK strongECONOMYstrong 1987-2009.pdfVIP

SURPLUS-VALUE AND AGGREGATE CONCENTRATION IN THE UK ECONOMY, 1987-2009 Vitor Leone Bruce Philp1 Abstract This paper examines the movements in the Marxian surplus-value rate using a Quantitative Marxist methodology. It examines the relationship between surplus-value and the degree of monopoly power in the UK economy using quarterly data and a proxy for aggregate concentration — the ratio of market capitalisation in FTSE100 firms to market capitalisation in FTSE All Share firms. Two other forces are considered: (i) the size of the ―reserve army‖ of the unemployed; (ii) working class militancy. Our results suggest that increases in the ―reserve army‖ influence the surplus-value rate positively, and that working class militancy is negatively related to changes in the surplus-value rate, indicating that strike action in this period is largely a defensive measure by workers. Finally, our data suggests that rising aggregate concentration (when measured by market capitalisation) exerts a profound, significant and positive effect on the rate of surplus-value. Keywords : Surplus-value, Monopoly Capital, Aggregate Concentration JEL Classifications : D33, B51, C22 Address for correspondence Dr Bruce Philp, Nottingham Business School, Nottingham Trent University, Burton Street, Nottingham, NG1 4BU. Email: bruce.philp@ntu.ac.uk. 1 1. Introduction According to Mandel: ‗Marx … considered the discovery of the concept of surplus- value, representing the sum total of profits, interests and rents of all parts of the bourgeois class,