Modern Classical Economics and Reality: A Spectral Analysis of the Theory of Value and Distribution (Evolutionary Economics and Social Complexity Science)
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This book presents an in-depth, novel, and mathematically rigorous treatment of the modern classical theory of value based on the spectral analysis of the price–profit–wage rate system. The classical theory is also subjected to empirical testing to show its logical consistency and explanatory content with respect to observed phenomena and key economic policy issues related to various multiplier processes. In this context, there is an examination of the trajectories of relative prices when the distributive variables change, both theoretically and empirically, using actual input–output data from a number of quite divers
e economies. It is suggested that the actual economies do not behave like the parable of a one-commodity world of the traditional neoclassical theory, which theorizes the relative scarcities of “goods and production factors” as the fundamental determinants of relative prices and their movement. By contrast, the results of the empirical analysis are fully consistent with the modern classical theory, which makes the intersectoral structure of production and the way in which net output is distributed amongst its claimants the fundamental determinants of price magnitudes. At the same time, however, these results indicate that only a few vertically integrated industries (“industry core” or “hyper-basic industries”) are enough to shape the behaviour of the entire economy in the case of a disturbance. This fact is reduced to the skew distribution of the eigenvalues of the matrices of vertically integrated technical coefficients and reveals that, across countries and over time, the effective dimensions of actual economies are surprisingly low.
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32–45. Walras, L. ([1874–1877] 1954). Elements of pure economics (trans: Jaffe´, W). London: Allen and Unwin. Willke, H. (1993). Systemtheorie. Eine Einf€ uhrung in die Grundprobleme der Theorie sozialer Systeme. Stuttgart: Gustav Fischer Verlag. Chapter 2 Modern Classical Theory of Prices and Outputs Abstract This chapter investigates the relationships amongst long-period relative prices, outputs, interindustry structure of production, income distribution and growth in linear systems. It is
those prices. Section 3.6 correlates actual production price-direct price differences with actual capitalintensity differences. Section 3.7 provides an empirical illustration of the norm bounds for the production price-relative profit rate curves. Section 3.8 deals with the monotonicity of those curves. Section 3.9 provides empirical illustrations of the wage-relative profit rate curve. Finally, Sect. 3.10 concludes.1 3.2 A Numerical Example of the US Input-Output Table For the better
3 Values, Prices and Income Distribution in Actual Economies 3.8 The Monotonicity of the Production Price-Profit Rate Curves Year 1990 Year 1991 Year 1996 Fig. 3.13 Cases of production price curves with two extreme points; Greece 103 104 3.8.3 3 Values, Prices and Income Distribution in Actual Economies Japan A similar picture emerges in Figs. 3.14 and 3.15, which are associated with the Japanese economy for the representative years 1980 and 1990, respectively. There are 23 cases (or
(2009). Determinants of the average profit rate and the trajectory of capitalist economies. Bulletin of Political Economy, 3(1), 13–36. Chapter 4 Measures of Production Price-Labour Value Deviation and Production Conditions Abstract Empirical studies indicate that the deviations of actual production prices from labour values are not too sensitive to the type of measure used for their evaluation. This chapter attempts to theorize this fact by focusing on the relationships between the
0.088 0.088 0.085 0.085 0.075 0.075 0.046 0.046 USA 1972 0.306 0.306 0.286 0.242 0.236 0.236 0.212 0.212 0.196 0.182 0.150 0.150 0.142 0.126 0.126 0.107 0.107 0.096 0.078 0.078 0.066 0.051 0.047 0.036 0.036 USA 1977 0.330 0.330 0.263 0.226 0.226 0.220 0.220 0.198 0.180 0.147 0.147 0.137 0.137 0.116 0.102 0.102 0.086 0.086 0.082 0.082 0.059 0.059 0.046 0.035 0.031 170 5 Spectral Decompositions of Single-Product Economies 31 32 33 34 35 36 37 38 39 AM GM SF π2 RE REN 0.008 0.008 0.001 . . ..