On Sraffa's Standard commodity

Bellino, Enrico

doi:10.1093/cje/28.1.121

Cited by 18 publications

(8 citation statements)

References 5 publications

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“…However, the dependence of movements of this particular price on the profit and real wage rates, support the abovementioned Afriat's criticism about the arithmetic impossibility of the simultaneous determination of a price "ultimately equal to the labour that has gone into making it" and being also the result of a particular income distribution. More recent discussions on the meaning of Sraffa's "standard commodity", on which there is not yet a commonly accepted view, include those of Bellino (2004), Baldone (2006), and Wright (2014Wright ( , 2017.…”

Section: Accounting For Prices In the Leontief-sraffa Modelmentioning

confidence: 99%

Solving the Reswitching Paradox in the Sraffian Theory of Capital

Milana¹

2019

AEF

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The possibility of the reswitching of techniques in Piero Sraffa’s intersectoral model, namely the recurring capital-intensive techniques with monotonic changes in the interest rate, is traditionally considered as a paradoxical violation of the assumed convexity of technology putting at stake the viability of the neoclassical theory of production. It is argued here that this phenomenon can be rationalized within the neoclassical paradigm. Sectoral interdependencies can give rise to the well-known price Wicksell effect, which is the revaluation of capital goods due to changes in relative prices triggered by monotonic variations in income distribution. The reswitching of techniques is, therefore, the result of cost-minimizing technical choices facing returning ranks of relative input prices in full consistency with the pure marginalist theory of factor rewards. The theoretical analysis proposed in this article is applied empirically to the counterexamples of various case studies presented in the literature.

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Section: Accounting For Prices In the Leontief-sraffa Modelmentioning

confidence: 99%

Solving the Reswitching Paradox in the Sraffian Theory of Capital

Milana¹

2019

AEF

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“…Sraffa (1960) refers to (8) as the standard system. Furthermore, with regard to the invariable measure of value, Bellino (2004) notes two effects of a change in the factor income distribution on relative prices when a commodity numéraire is adopted: the own-industry effect and the numéraire effect. Suppose that the relative prices are unchanged when the factor income distribution changes.…”

Section: Ricardian Invariable Measure Of Value and Sraffian Standard mentioning

confidence: 99%

On the Ricardian invariable measure of value in general convex economies

Kurose

Yoshihara

2019

Structural Change and Economic Dynamics

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This study examines the possibility of an invariable measure of value when price changes induced by income redistribution between profit and wages take place in general convex economies. While Ricardo searched for an invariable measure of value with respect to changes in both the factor income distribution and the technique, Sraffa constructed a standard commodity serving as a measure of the change in a factor income distribution alone by leaving aside the possibility of changes in the size and composition of output and means of production. This study allows for the possibility that a change in factor income distribution involves a change in technique, and proposes an extension of Sraffa's standard commodity. Then, we show that it serves as an invariable measure of value with respect to the income redistribution, even though it involves a change in technique. Finally, we examine whether the linear distributional relation is preserved.

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“…completes the normalized process. 9 The reader may find an interesting parallel between the two standard commodities by comparing the interpretation of Sraffa's standard commodity in Bellino (2004) with the standard adopted in the text, in the light of the distinction between numeraire and reference good. 10 We may write P X P X P X 1 1 2 2 3 3 1 , , , τ τ τ + + = as a numeraire equation.…”

Section: A Revised Normalized Processmentioning

confidence: 99%

Numeraire, Savings and the Instability of a Competitive Equilibrium

Parrinello

2010

Metroeconomica

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This paper addresses the stability of a multimarket competitive equilibrium. The dependence of stability on the choice of the numeraire is clarified. The traditional tâtonnement pricing is revised in order to satisfy some basic features of economic behaviour. Well-known conditions for local stability are proved to be insufficient if a market for credit is introduced alongside the markets of dated commodities. Stability depends not only on the slopes of the demand and supply curves, but also on equilibrium prices. This result emerges without the occurrence of capital perversities, such as reswitching and reverse capital deepening.

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On Sraffa's Standard commodity

Cited by 18 publications

References 5 publications

Solving the Reswitching Paradox in the Sraffian Theory of Capital

Solving the Reswitching Paradox in the Sraffian Theory of Capital

On the Ricardian invariable measure of value in general convex economies

Numeraire, Savings and the Instability of a Competitive Equilibrium

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