Normal Prices, Technical Change and Accumulation

by Schefold, Bertram

• ISBN13: 9780312161477
• ISBN10: 0312161476
• Format: Hardcover
• Copyright: 1997-02-01
• Publisher: Palgrave Macmillan

Table of Contents

Preface	xi	(4)
Acknowledgements	xv
1 Introduction: Sraffa's Theory Today	1	(20)
1.1 The teacher	1	(1)
1.2 The early critique	2	(2)
1.3 Production of commodities	4	(2)
1.4 Intertemporal eqilibrium	6	(1)
1.5 The classical method	7	(2)
1.6 Joint production	9	(3)
1.7 The composition of output	12	(3)
1.8 Distribution	15	(2)
1.9 The 'Prelude' and its implications	17	(4)
PART I GENERAL PROPERTIES OF SINGLE AND POINT PRODUCTION SYSTEMS	21	(80)
2 Mulitple Product Techniques with Properties of Single Product Systems	21	(25)
2.1 Single versus joint production	22	(5)
2.2 Negative labour values, indispensable processes and separately producible commodities	27	(2)
2.3 All-engaging systems and swiches of techniques	29	(5)
2.4 General joint production systems	34	(5)
2.5 A remark on technical progress	39	(7)
3 Relative Prices as a Function of the Rate of Profit: A Mathematical Note	46	(30)
3.1 A new mathematical theorem	46	(5)
3.2 Values and prices: the rule and the exception	51	(4)
3.3 Uniqueness of the system yielding a given vector of prices	55	(2)
3.4 Reswitching and the technology set	57	(11)
3.5 Wicksell effects	68	(3)
3.6 The capital-wages ratio	71	(5)
4 The Standard Commodity as a Tool of Economic Analysis	76	(25)
4.1 Introduction	76	(1)
4.2 The standard commodity in economic analysis	77	(2)
4.3 The search for an invariable measure of value and Sraffa's development of the standard commodity	79	(8)
4.4 A mathematical formulation	87	(7)
4.5 A comment on Flaschel	94	(7)
PART II THE DOMINANT TECHNIQUE	101	(110)
5 On Counting Equations	101	(34)
5.1 Introduction	101	(41)
5.2 Comparing wage curves and optimal solutions: general case	105	(10)
5.3 Properties of regular systems	115	(12)
5.4 Counting of equations	127	(5)
5.5 Example	132	(3)
6 Von Neumann and Sraffa: Mathematical Equivalence and Conceptual Difference	135	(21)
6.1 The framework of comparison	135	(10)
6.1.1 Prices and technical change in Sraffa systems	135	(3)
6.1.2 Growth and technical change in Sraffa systems	138	(1)
6.1.3 The von Neumann approach	139	(1)
6.1.4 Establishing formal equivalence	140	(3)
6.1.5 Intersecting and coinciding wage curves	143	(2)
6.2 Conceptual diferences	145	(5)
6.2.1 Equilibrium and processes	145	(2)
6.2.2 Beyond the golden rule	147	(1)
6.2.3 Summary	148	(2)
Appendix: Mathematical Formulation	150	(6)
7 The Dominant Technique in Joint Production Systems	156	(41)
7.1 Introduction	156	(7)
7.2 The dominant technique	163	(10)
7.3 What has been achieved?	173	(3)
Appendix 1: Graphic Illustrations and Examples	176	(4)
Appendix 2: The Influence of Changes of the Composition of Output on the Dominant Technique	180	(11)
Appendix 3: Proofs of the Theorems	191	(6)
8 Joint Production: A Further Assessment	197	(14)
8.1 Introduction	197	(1)
8.2 Puzzles and more serious problems	198	(2)
8.3 Important areas of research	200	(5)
Appendix	205	(6)
PART III FIXED CAPITAL AND TECHNICAL PROGRESS	211	(80)
9 Fixed Capital as a Joint Product	211	(29)
9.1 Introduction	211	(1)
9.2 Machines	212	(6)
9.3 Integrated systems and finished goods	218	(2)
9.4 Prices and intermediate goods (old machines)	220	(6)
9.5 Truncation theorems	226	(6)
Appendix: Proofs of the Mathematical Theorems	232	(8)
10 Reduction to Dated Quantities of Labour, Roundabout Processes and Switches of Technique in Fixed Capital Systems	240	(17)
10.1 Reduction	240	(2)
10.2 Fixed capital and the 'centre'	242	(3)
10.3 Interpretation of centre coefficients	245	(3)
10.4 Further applications	248	(4)
10.5 Roundabout processes	252	(5)
11 Different Forms of Technical Progress	257	(19)
11.1 Introduction	257	(1)
11.2 Saving of labour	258	(2)
11.3 Mechanisation	260	(5)
11.4 Effects of mechanisation	265	(3)
11.5 Other forms of technical progress	268	(2)
11.6 Marx's temporary retreat to Ricardo	270	(3)
11.7 Conclusions	273	(3)
12 Capital, Growth and Definitions of Technical Progress	276	(15)
12.1 A contrast between the theories of capital and growth	276	(2)
12.2 The avalanche of switchpoints	278	(2)
12.3 The superiority of techniques	280	(3)
12.4 Simple forms of technical progress	283	(8)
PART IV THE COMPOSITION OF OUTPUT	291	(68)
13 Sraffa and Applied Economics: Joint Production	291	(26)
13.1 The classical method	291	(2)
13.2 Joint production and accounting	293	(4)
13.3 Why 'square' joint production systems?	297	(3)
13.4 Examples for the use of 'square' systems	300	(1)
13.5 Counting of equations -- I: the case of overdetermination	301	(2)
13.6 Counting of equations -- II: the case of underdetermination	303	(3)
13.7 Counting of equations -- III: a more systematic presentation for a special case	306	(5)
13.8 Revival and development of the classical method	311	(6)
14 On changes in the Composition of Output	317	(42)
14.1 Indtroduction: preferences and needs	317	(16)
14.2 The surplus approach	333	(4)
14.3 Single product systems and constant returns	337	(5)
14.4 Joint production	342	(8)
14.5 Variable returns and technical progress	350	(4)
14.6 Conclusion	354	(5)
PART V RELATIONS BETWEEN CLASSICAL, NEOCLASSICAL AND KEYNESIAN THEORIES	359	(191)
15 Joint Production,Intertemporal Preferences and Long-period Equilibrium	359	(27)
15.1 Permanent and transient states	359	(2)
15.2 Demand and distribution	361	(3)
15.3 The gree-goods rule	364	(1)
15.4 Square systems	365	(9)
15.5 Effects of quantity variations: normal cost curves and demand	374	(3)
15.6 Capital theory, intertemporal models and long-period equilibrium	377	(5)
15.7 Conclusions	382	(4)
16 The Market and the Classical Theory of Prices	386	(12)
16.1 The revival of classical theory	386	(5)
16.2 Demand, distribution and prices	391	(7)
17 On the Classical and Marshallian Foundations of Keynesian and Post-Keynesian Economics	398	(27)
17.1 Introduction	398	(1)
17.2 Kahn on Malinvaud: a restatement	399	(6)
17.3 Keynes and Marshall	405	(5)
17.4 Equilibrium curves and effective demand in classical theory	410	(7)
17.5 Which microfoundation? For What?	417	(8)
18 Classical Theory and Intertemporal Equilibrium	425	(77)
18.1 Part One: intertemporal equilibrium and the long period	425	(35)
18.1.1 Neoclassical long-period equilibrium and interemporal equilibrium	425	(7)
18.1.2 Some properties of an intertemporal equilirium in transition towards the long period	432	(9)
18.1.3 Intertemporal equilibrium, measure of capital and theory of employment	441	(8)
18.1.4 Gravitation to classical and neoclassical equilibria of the long period	449	(4)
18.1.5 Rates of growth and rates of profit	453	(7)
18.2 Part Two: reswitching in an intertemporal equilibrium model	460	(42)
18.2.1 An intertemporal model	461	(9)
18.2.2 Time paths of quantities and prices	470	(4)
18.2.3 The convergence of prices and of the choice of technique to long-run conditions	474	(3)
18.2.4 A spectrum of techniques with reswitching and employment opportunity reversals	477	(6)
18.2.5 Different equilibrium paths and their interpretation	483	(22)
19 Schumpeter as a Walrasian Austrian and Keynes as a Classical Marshallian	502	(23)
19.1 Schumpeter: rival of Keynes	502	(5)
19.2 Schumpeter's theory of cvclical development	507	(9)
19.3 Walras' theory of capital: a legacy repudiated	516	(3)
19.4 Keynes: Marshall, liquidity preference and little else?	519	(3)
19.5 Who won?	522	(3)
20 Ecological Problems as a Challenge to Classical and Keynesian Economics	525	(25)
20.1 Looking around	526	(10)
20.1.1 Five layers of environmental disruption	526	(7)
20.1.2 Different economic systems	533	(2)
20.1.3 Are our measures to improve matters counterproductive?	535	(1)
20.2 Classical economic theory and environmental issues: some heretical speculations	536	(7)
20.3 Neoclassical approaches and two of their classical counterparts	543	(7)
Bibliography	550	(13)
Index	563