On the Role of Capital in “Capitalist” and in Labor-Managed Firms

This paper outlines the “fundamental myth” about the structure of property rights in a capitalist economy, namely the idea that being the residual claimant in a productive opportunity is part of a bundle of property rights known as ┬áthe “ownership of the firm.” Residual claimancy is contractually determined so there is no such “ownership.” ┬áThe fundamental myth exposes a basic fallacy in capital theory that has hitherto escaped attention in the capital theory debates. (Reprint from: Review of Radical Political Economics, Winter 2007)

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