ated in Sraffa. Garegnani pointed out that Ricardo stated that the "rate of profits and of interest must depend on the proportion of production to the consumption necessary to produce such consumption." Further, Hollander himself acknowledged that Ricardo accepted "responsibility for the general notion that . . . profits are governed by agricultural productivity."
Garegnani described Ricardo's concept of the rate of profit. He noted that, in developing the rate of profit, Ricardo assumed a yearly production cycle, that wages are advanced at the beginning of the cycle (and are thus a part of capital), and capital consisted primarily of wages advanced. With these assumptions, Ricardo "saw the division of the product between wages and profits as the only factor capable of influencing the rate of profit." Ricardo's formula for determining the rat
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