Effective Demand in a “Classical” Model of Value and Distribution: The Multiplier in a Sraffian Framework

Kurz, Heinz D.

doi:10.1111/j.1467-9957.1985.tb01170.x

Cited by 45 publications

(29 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…First, there is an established matrix multiplier literature in which multisectoral models have structural similarities to the Keynesian multiplier (see, for example, Kurz, 1985;Miyazawa & Masegi, 1963;Goodwin, 1949). The novel result presented here is that the multisectoral model can be collapsed into a scalar.…”

Section: A B Trigg and F S Leementioning

confidence: 90%

Pasinetti, Keynes and the multiplier

Trigg

Lee

2005

Review of Political Economy

View full text Add to dashboard Cite

This paper explores the relationship between the Keynesian multiplier and Pasinetti's model of pure production. Key assumptions of Pasinetti's model are its multisectoral structure, the definition of all income as a reward to labouring activities and, as a consequence, the operation of a pure labour theory of value. A translation between these models is effected by introducing investment as an exogenous determinant. By drawing from Keynes to apply his concept of the wage unit, it is possible to aggregate from Pasinetti's multisectoral model to a genuinely macroeconomic multiplier. This provides a way of using the scalar Keynesian multiplier without making the restrictive one-commodity assumption. In addition, this formal demonstration enhances our understanding of the relationship between the wage unit and the labour theory of value. Finally, critics have argued that Pasinetti downgrades the importance of institutional analysis; in contrast, the derivation of a scalar Keynesian multiplier contributes to an understanding of how relevant Pasinetti's approach is to the analysis of a monetary production economy.

show abstract

Section: A B Trigg and F S Leementioning

confidence: 90%

Pasinetti, Keynes and the multiplier

Trigg

Lee

2005

Review of Political Economy

View full text Add to dashboard Cite

show abstract

“…In fact, the volume under review is presented by its authors in their Introduction as just one element of a larger project, embodied, so far, in this volume together with two previous collections of essays (Kurz andSalvadori 1998, 2003). What is that project?…”

Section: Book Reviewsmentioning

confidence: 96%

“…Although Trigg argues that this multiplier 'captures the inter-departmental structure' of the system, a Leontief-type matrix multiplier would be better suited than a scalar multiplier to the job of showing the interconnectedness of production. Leontief, of course, owed much to Marx's reproduction schema; later work by Richard Goodwin (1949), Miyazawa and Masegi (1963) and Heinz D. Kurz (1985), among others, integrated Keynesian, Kaleckian and Sraffian elements into matrix multipliers that, like Leontief's, show precisely how an autonomous change in some component of final demand ripples through the different sectors of the economy. What do we gain, though, by moving in the opposite direction -by reducing a matrix multiplier to a scalar?…”

mentioning

confidence: 96%

Book reviews

Dobusch

2008

The European Journal of the History of Economic Thought

View full text Add to dashboard Cite

“…Should this be seen as a model of the Pyatt et al type (20) in which the sub-matrix B 2,2 has been set equal to zero, with consequent loss of generality, or as a model of the Miyazawa & Masegi type (24)? The problem is not new and, in analysing such a model, Kurz (1985) has commented that:…”

Section: Some Comments In Conclusionmentioning

confidence: 98%

Some Early Multiplier Models of the Relationship between Income Distribution and Production Structure

Pyatt¹

2001

Economic Systems Research

View full text Add to dashboard Cite

Early efforts to endogenize consumption and hence to model the inter-relationships between production structures and income distribution via multiplier models are reviewed in this paper. It is suggested that, unlike the multipliers in Pyatt et al. (1973), the so-called Miyazawa multipliers cannot be sustained in the context of a model of the distribution of income among institutions (households, companies, etc) i.e. the institutional distribution of income. They can, however, be sustained within a model of the distribution of income among factors, i.e. the factorial distribution of income. Both distributions are modelled by Pyatt & Round (1979) which therefore provides a more general framework for analysing the relationship between the distribution of income and the structure of production.Multipliers, Social Accounting Matrices,

show abstract

Effective Demand in a “Classical” Model of Value and Distribution: The Multiplier in a Sraffian Framework

Cited by 45 publications

References 5 publications

Pasinetti, Keynes and the multiplier

Pasinetti, Keynes and the multiplier

Book reviews

Some Early Multiplier Models of the Relationship between Income Distribution and Production Structure

Contact Info

Product

Resources

About