ABSTRACT
The focus of the capital theory controversies has been on the shape of the wage-profit rate curves from a purely theoretical perspective without being aware of the data of the actual economies. In this chapter, we bring fresh empirical evidence from many economies, which shows that the case of reswitching is possible but rare and the wage rate of profit curves are more of the linear type. However, this neither vindicates the neoclassical theory of value nor dumps the classical one. On the contrary, the empirical findings give credence to the explanatory content of the classical theory and open new research directions.
