Page 5 - Azerbaijan State University of Economics

N.Akimov., S.Baizakov., A. Oinarov., E.Utembayev: The analysis of the macroeconomic
dynamics and assessment of smart factors’ inputs to the balanced growth rates

Truly, John B. Clark considered that the study and discovery of such laws was
in focus of the political not theoretical economy. According to I. Rozmainskii‘s
comments, the laws of market economy are not being applied in current practices,
neither in statics nor dynamics. In the same token, the above referred laws are not
used in assessing the effectiveness of regulatory policies [I.V. Rosmainskii, 2000].
The study of John B. Clark‘s book enables us to understand that fair laws of
the theoretical economy are yet applied in analyses of social economy. The latter, as
the core of analyses, is explored when in statics, statistics, and in the process of
development.
In this, the objective of the analysis, according to John B. Clark, is the act of
setting up qualitative and quantitative indicators of market economy equilibrium,
which proved true for a given moment in time. As for analyzing the macroeconomic
dynamics, the act of defining the share of every type of production factors and
resources that are involved in generating gross annual product, may be well regarded
as the target objective.
In general, the concept of the marginal utility theory, as suggested by John B.
Clark, is all the more interesting in the part in which it allows to draw explicit
boundaries between the income method of one-dimensional measuring of costs and
outcomes (by Adam Smith) and the cost-driven method of two-dimensional
measuring (by Karl Marx.)
In John B. Clark‘s view, the economic theory developed by Adam Smith may
serve as the theory base in analyzing macroeconomics in statics whilst the expanded
reproduction schemes by Karl Marx may serve the solid theory base for analyzing
the macroeconomic dynamics.
Problem setting according to John B. Clark. Under the John B. Clark‘s
concept, the regulatory, let us say, empirical assessment of the marginal utility
theory may result in that labor will get what it works for, capital owner – what is
earned by capital, and land owner – what is given by land.
The principle of marginal utility in wealth distribution is based on distributing
the shares of wealth that are commensurate to the efforts, exerted in the production
of the final product. The latter had been construed by the author as the ‗gross
income‘, defined on the basis of the ‗aggregate product less material costs of the
interim consumption‘.
In other words, Adam Smith, in the process of shifting from the two-
dimensional measurement unit to one-dimensional, had gotten rid of the material
components of the aggregate product.
From the residual, which is considered to be the ‗final product‘, each
production factor is attached its own ‗share‘ and share-owners are financially

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