Normal Prices, Technical Change and Accumulation

Cover......Page 2
Half-Title......Page 3
Title......Page 5
Copyright......Page 6
Contents......Page 7
Preface......Page 13
Acknowledgements......Page 17
1.1 The teacher......Page 19
1.2 The early critique......Page 20
1.3 Production of commodities......Page 22
1.4 Intertemporal equilibrium......Page 24
1.5 The classical method......Page 25
1.6 Joint production......Page 27
1.7 The composition of output......Page 30
1.8 Distribution......Page 33
1.9 The \'Prelude\' and its implications......Page 35
PART I GENERAL PROPERTIES OF SINGLE AND JOINT PRODUCTION SYSTEMS......Page 37
2 Multiple Product Techniques with Properties of Single Product Systems......Page 39
2.1 Single versus joint production......Page 40
2.2 Negative labour values, indispensable processes and separately producible commodities......Page 45
2.3 All-engaging systems and switches of techniques......Page 47
2.4 General joint production systems......Page 52
2.5 A remark on technical progress......Page 57
3.1 A new mathematical theorem......Page 64
3.2 Values and prices: the rule and the exception......Page 69
3.3 Uniqueness of the system yielding a given vector of prices......Page 73
3.4 Reswitching and the technology set......Page 75
3.5 Wicksell effects......Page 86
3.6 The capital-wages ratio......Page 89
4.1 Introduction......Page 94
4.2 The standard commodity in economic analysis......Page 95
4.3 The search for an invariable measure of value and Sraffa\'s development of the standard commodity......Page 97
4.4 A mathematical formulation......Page 105
4.5 A comment on Flaschel......Page 112
PART II THE DOMINANT TECHNIQUE......Page 117
5.1 Introduction......Page 119
5.2 Comparing wage curves and optimal solutions: general case......Page 123
5.3 Properties of regular systems......Page 133
5.4 Counting of equations......Page 145
5.5 Example......Page 150
6.1.1 Prices and technical change in Sraffa systems......Page 153
6.1.2 Growth and technical change in Sraffa systems......Page 156
6.1.3 The von Neumann approach......Page 157
6.1.4 Establishing formal equivalence......Page 158
6.1.5 Intersecting and coinciding wage curves......Page 161
6.2.1 Equilibrium and processes......Page 163
6.2.2 Beyond the golden rule......Page 165
6.2.3 Summary......Page 166
Appendix: Mathematical Formulation......Page 168
7.1 Introduction......Page 174
7.2 The dominant technique......Page 181
7.3 What has been achieved?......Page 191
Appendix 1: Graphic Illustrations and Examples......Page 194
Appendix 2: The Influence of Changes of the Composition of Output on the Dominant Technique......Page 198
Appendix 3: Proofs of the Theorems......Page 209
8.1 Introduction......Page 215
8.2 Puzzles and more serious problems......Page 216
8.3 Important areas of research......Page 219
Appendix......Page 223
PART III FIXED CAPITAL AND TECHNICAL PROGRESS......Page 227
9.1 Introduction......Page 229
9.2 Machines......Page 230
9.3 Integrated systems and finished goods......Page 236
9.4 Prices and intermediate goods (old machines)......Page 238
9.5 Truncation theorems......Page 244
Appendix: Proofs of the Mathematical Theorems......Page 250
10.1 Reduction......Page 258
10.2 Fixed capital and the \'centre\'......Page 260
10.3 Interpretation of centre coefficients......Page 263
10.4 Further applications......Page 266
10.5 Roundabout processes......Page 270
11.1 Introduction......Page 275
11.2 Saving of labour......Page 276
11.3 Mechanisation......Page 278
11.4 Effects of mechanisation......Page 283
11.5 Other forms of technical progress......Page 286
11.6 Marx\'s temporary retreat to Ricardo......Page 288
11.7 Conclusions......Page 291
12.1 A contrast between the theories of capital and growth......Page 294
12.2 The avalanche of switchpoints......Page 296
12.3 The superiority of techniques......Page 298
12.4 Simple forms of technical progress......Page 301
PART IV THE COMPOSITION OF OUTPUT......Page 307
13.1 The classical method......Page 309
13.2 Joint production and accounting......Page 311
13.3 Why \'square\' joint production systems?......Page 315
13.4 Examples for the use of \'square\' systems......Page 318
13.5 Counting of equations - I: the case of overdetermination......Page 319
13.6 Counting of equations - II: the case of underdetermination......Page 321
13.7 Counting of equations - III: a more systematic presentation for a special case......Page 324
13.8 Revival and development of the classical method......Page 329
14.1 Introduction: preferences and needs......Page 335
14.2 The surplus approach......Page 351
14.3 Single product systems and constant returns......Page 355
14.4 Joint production......Page 360
14.5 Variable returns and technical progress......Page 368
14.6 Conclusion......Page 372
PART V RELATIONS BETWEEN CLASSICAL, NEOCLASSICAL AND KEYNESIAN THEORIES......Page 375
15.1 Permanent and transient states......Page 377
15.2 Demand and distribution......Page 379
15.3 The free-goods rule......Page 382
15.4 Square systems......Page 383
15.5 Effects of quantity variations: normal cost curves and demand......Page 392
15.6 Capital theory, intertemporal models and long-period equilibrium......Page 395
15.7 Conclusions......Page 400
16.1 The revival of classical theory......Page 404
16.2 Demand, distribution and prices......Page 409
17.1 Introduction......Page 416
17.2 Kahn on Malinvaud: a restatement......Page 417
17.3 Keynes and Marshall......Page 423
17.4 Equilibrium curves and effective demand in classical theory......Page 428
17.5 Which microfoundation? For What?......Page 435
18.1.1 Neoclassical long-period equilibrium and intertemporal equilibrium......Page 443
18.1.2 Some properties of an intertemporal equilibrium in transition towards the long period......Page 450
18.1.3 Intertemporal equilibrium, measure of capital and theory of employment......Page 459
18.1.4 Gravitation to classical and neoclassical equilibria of the long period......Page 467
18.1.5 Rates of growth and rates of profit......Page 471
18.2 Part Two: reswitching in an intertemporal equilibrium model......Page 478
18.2.1 An intertemporal model......Page 479
18.2.2 Time paths of quantities and prices......Page 488
18.2.3 The convergence of prices and of the choice of technique to long-run conditions......Page 492
18.2.4 A spectrum of techniques with reswitching and employment opportunity reversals......Page 495
18.2.5 Different equilibrium paths and their interpretation......Page 501
19.1 Schumpeter: rival of Keynes......Page 520
19.2 Schumpeter\'s theory of cyclical development......Page 525
19.3 Walras\' theory of capital: a legacy repudiated......Page 534
19.4 Keynes: Marshall, liquidity preference and little else?......Page 537
19.5 Who won?......Page 540
20 Ecological Problems as a Challenge to Classical and Keynesian Economics......Page 543
20.1.1 Five layers of environmental disruption......Page 544
20.1.2 Different economic systems......Page 551
20.1.3 Are our measures to improve matters counterproductive?......Page 553
20.2 Classical economic theory and environmental issues: some heretical speculations......Page 554
20.3 Neoclassical approaches and two of their classical counterparts......Page 561
Bibliography......Page 568
Index......Page 581