Okishio Theory Revisited in the Light of ‘Axiomatic Externality’
It is well known that Nobuo Okishio played a central role in the world of mathematical Marxian economics. In this paper, we examine Okishio theory from a methodological perspective. Our focus is the “theoretical boundary” that separates the economic model from conditions “given from outside”. We demonstrate that Okishio’s theory could be “an open” system, but, actually, it only shows the Achilles heel of a capitalist economy. Nevertheless, bearing in mind that the accumulation of capital is at the heart of the workings of a capitalist system, and even if modern capitalism were to be financialised, Okishio’s theory should still provide us with a starting from which to think about this system, because it demonstrates capitalism’s essentially unstable character.