Flaschel Topics in Classical Micro- and Macroeconomics

Elements of a Critique of Neoricardian Theory
1. Auflage 2010
ISBN: 978-3-642-00324-0
Verlag: Springer
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 507 Seiten

This book on Classical micro- and macrodynamics includes revised versions of papers which were written between 1983 and 2000, some jointly with co-authors, and it supplements them with recent work on the issues which are raised and treated in them. It attempts to demonstrate to the reader that themes of Classical economics, in particular in the tradition of Smith, Ricardo and Marx, can be synthesized into a coherent whole, from the perspective of formal model building. This is accomplished by means of mathematical techniques which, on the one hand, provide a consistent accounting framework (labor values and prices of p- duction) as point of reference for Classical micro- and macro-dynamics and which, on the other hand, attempt to apply these accounting schemes - or suitable ext- sions of them - by showing their usefulness as tools of analysis of the implications of technological change (labor values) and as potential tools for understanding the dynamics of market prices and of income distribution around their centers of gravity (production prices and the wage-pro?t curve).

Autoren/Hrsg.

Flaschel, Peter

Inhaltsverzeichnis

1;Preface
;5
2;Contents;14
3;Part I Labor Values: Theory and Measurement;21
3.1;1 The So-Called ``Transformation Problem'' Revisited;24
3.1.1;1.1 Introduction and Overview;24
3.1.2;1.2 Lipietz's Theorem;25
3.1.3;1.3 Labor Value Ratios: The Systematic Component in Their Price Expressions?;26
3.1.4;1.4 Conclusions;27
3.1.5;References;28
3.2;2 Baseline Approaches to the Labor Theory of Value;29
3.2.1;2.1 Introduction;29
3.2.2;2.2 Labor Value Accounting: Some Propositions;33
3.2.3;2.3 Four Baseline Approaches to Marx' Labor Theory of Value;36
3.2.3.1;2.3.1 The Temporal Single System Interpretation (TSSI);36
3.2.3.2;2.3.2 The Aggregate Single System Interpretation (ASSI);39
3.2.3.3;2.3.3 The Conventional Dual System Approach (CDSA);41
3.2.3.4;2.3.4 The Marxian Dual System Approach (MDSA);45
3.2.4;2.4 Conclusions;50
3.2.5;References;52
3.3;3 Using Labor Values: Labor Productivity and Technical Change;55
3.3.1;3.1 Introduction;55
3.3.2;3.2 Labor Productivity. A Marxian Critique of its Value-Added Decomposition;56
3.3.2.1;3.2.1 The Measurement of Labor Productivity;56
3.3.2.2;3.2.2 Input–Output Tables and Measures of Real Value Added;58
3.3.2.3;3.2.3 Labor Values as Measures of Labor Productivity;60
3.3.2.4;3.2.4 Notes on Technological Change;65
3.3.2.5;3.2.5 Disaggregating Aggregate Measures of Labor Productivity;67
3.3.2.6;3.2.6 A Summing Up;71
3.3.3;3.3 Technical Change and the Law of Decreasing Labor Content;72
3.3.3.1;3.3.1 Basic Propositions on Price-Value Relationships;72
3.3.3.2;3.3.2 Notes on the Law of Decreasing Labor Content;76
3.3.3.3;3.3.3 Multiple Activities and Joint Production: Some Observations;78
3.3.3.4;3.3.4 The Okishio Theorem and the Tendency of the Profit Rate to Fall;80
3.3.3.5;3.3.5 The Law of Decreasing Labor Content: Empirical Results;81
3.3.4;3.4 Conclusions;87
3.3.5;References;87
3.4;4 Marx After Stone: The Marxian Contribution to the UN's SNA;89
3.4.1;4.1 Introduction;89
3.4.2;4.2 Employment Multipliers and Labor Values in Pure Joint Production Systems;91
3.4.2.1;4.2.1 Employment Multipliers;92
3.4.2.2;4.2.2 Labor Values;94
3.4.2.3;4.2.3 Summary;99
3.4.3;4.3 Measurements of Total Labor Requirements Using Input–Output Methodology;100
3.4.3.1;4.3.1 A Physical Input–Output Example;101
3.4.3.2;4.3.2 Case 1: Industry Coefficients;101
3.4.3.3;4.3.3 Case 2: The Output Method;103
3.4.3.4;4.3.4 Case 3: The Commodity–Technology Hypothesis;104
3.4.3.5;4.3.5 Case 4: The Industry–Technology Hypothesis;106
3.4.3.6;4.3.6 Concluding Remarks;107
3.4.4;4.4 Actual Labor Values vs. Zero–Profit Prices in Sraffian Models of Fixed Capital;108
3.4.4.1;4.4.1 Introduction;108
3.4.4.2;4.4.2 Average and Individual Labor Values in Single Product Systems;110
3.4.4.3;4.4.3 Individual Values in the Case of Fixed Capital: Steedman's Example of Falling Efficiency Reconsidered;114
3.4.4.4;4.4.4 Rising Efficiency and Rising Book Valuesof Machinery;118
3.4.4.5;4.4.5 Final Remarks;121
3.4.5;4.5 Conclusions and Outlook;122
3.4.6;References;125
3.5;5 Actual Labor Values in a General Model of Production;127
3.5.1;5.1 Introduction;127
3.5.2;5.2 A General Equilibrium Approach to Marxian Economics;129
3.5.2.1;5.2.1 Reproducible Solutions;130
3.5.2.2;5.2.2 The Optimum Labor Theory of Value;131
3.5.3;5.3 A New and Measurable Definition of Labor Values for Joint Production Systems;133
3.5.3.1;5.3.1 Marx's Case of Multiple Activities;134
3.5.3.2;5.3.2 Joint Production;135
3.5.3.3;5.3.3 The Input–Output Approach to Joint Production;138
3.5.4;5.4 Values, Prices and Profits;142
3.5.5;5.5 Conclusions;146
3.5.6;References;146
3.6;6 Employment Multipliers and the Measurement of Labor Productivity;147
3.6.1;6.1 Introduction;147
3.6.2;6.2 The Measurement of Total Factor Requirements Using Input–Output Tables;148
3.6.3;6.3 Joint Production;150
3.6.4;6.4 System Indicators of Employment and Productivity;151
3.6.5;6.5 Some Results for an Analysis of Technical Change;155
3.6.6;6.6 The Case of a Uniform Composition of Capital;157
3.6.7;6.7 Conclusions;158
3.6.8;References;160
3.7;7 Technology Assumptions and the Energy Requirementsof Commodities;162
3.7.1;7.1 An Overview on Problems and Results;162
3.7.2;7.2 Analytical Preliminaries;167
3.7.3;7.3 Energy Consumption;169
3.7.4;7.4 Energy Costs;176
3.7.5;7.5 Comparing Energy Consumption and Energy Costs;182
3.7.6;7.6 Summary;189
3.7.7;References;189
4;Part II Production Prices and the Standard Commodity. A Critical Reassessment;191
4.1;8 In Search of Foundations for a Classical Theory of Competition;194
4.1.1;8.1 Classical Ruthless Competition;194
4.1.2;8.2 Two-Sector Economies;195
4.1.2.1;8.2.1 The Crude State of the Society;195
4.1.2.2;8.2.2 Some Observations;197
4.1.2.3;8.2.3 Production of Commodities by Meansof Commodities;198
4.1.3;8.3 Sraffian Multisectoral Economies;205
4.1.3.1;8.3.1 Economic Properties;206
4.1.3.2;8.3.2 Mathematical Foundations;208
4.1.4;8.4 A Streetcar Named Desire: The von Neumann Production Price Model;212
4.1.5;8.5 Differentiated Sectoral Wage and Profit Rates ;219
4.1.6;8.6 Capital Stock Matrices and Sectoral Profit Rates;231
4.1.6.1;8.6.1 Capital Consumed and Capital Advanced;231
4.1.6.2;8.6.2 Makeshift Construction of Empirical Depreciation and Capital Stock Matrices;234
4.1.7;8.7 Conclusions and Outlook;240
4.1.8;References;241
4.2;9 Two Concepts of Basic Commodities for Joint Production Systems;243
4.2.1;9.1 Introduction;243
4.2.2;9.2 Basic Leontief-Commodities;244
4.2.3;9.3 L-Basics: Further Discussion;248
4.2.4;9.4 Basic Sraffa-Commodities;255
4.2.5;9.5 Conclusion;260
4.2.6;References;260
4.3;10 Some Continuity Properties of a Reformulated Sraffa Model;261
4.3.1;10.1 Introduction;261
4.3.2;10.2 Limit Cases of Sraffian Models of Production Prices;261
4.3.3;10.3 Some Propositions;264
4.3.4;10.4 Conclusions;268
4.3.5;References;269
4.4;11 The Standard Commodity and the Theory of Income Distribution;270
4.4.1;11.1 Introduction;270
4.4.2;11.2 The Sraffian Approach to Income Distribution;270
4.4.3;11.3 The Standard Commodity;272
4.4.4;11.4 Hiding Nonlinearities: The Role of the Standard Commodity;272
4.4.5;11.5 Conclusions;277
4.4.6;References;277
4.5;12 Sraffa's Standard Commodity: No Fulfillment of Ricardo's Dream of an `Invariable Measure of Value';278
4.5.1;12.1 Introduction;278
4.5.2;12.2 Flaws in the Interpretation of the Standard Commodity;279
4.5.3;12.3 Flaws in the Construction of Sraffa's Standard of Value;282
4.5.4;12.4 On the Non-Existence of an `Invariable Measure of Value';286
4.5.5;12.5 Conclusions;290
4.5.6;References;291
5;Part III Gravitation or Convergence in Classical Micro-Dynamics;292
5.1;13 Dressing the Emperor in a New Dynamic Outfit;295
5.1.1;13.1 Introduction;295
5.1.2;13.2 An Extension of the Walrasian Tâtonnement Process;298
5.1.3;13.3 Global Stability by Derivative Control;301
5.1.4;13.4 Examples;306
5.1.5;13.5 Conclusions;310
5.1.6;References;311
5.2;14 Stability: Independent of Economic Structure? A Prototype Analysis;312
5.2.1;14.1 Introduction;312
5.2.2;14.2 Cross-Dual Dynamics in Walrasian Production Economies;314
5.2.3;14.3 Universal Stability;319
5.2.4;14.4 Newton Methods: Old and New;325
5.2.5;14.5 Ignorable Components?;330
5.2.6;14.6 Conclusions;336
5.2.7;References;337
5.3;15 Classical and Neoclassical Competitive Adjustment Processes;339
5.3.1;15.1 Introduction;339
5.3.2;15.2 Neoclassical Stability Analysis in the Short and in the Long Run;340
5.3.3;15.3 Classical Competition: Notes on the Literature;343
5.3.4;15.4 A New Approach to the Stability of Market Economies;347
5.3.4.1;15.4.1 Square Joint Production Systems;347
5.3.4.2;15.4.2 Process Extinction;353
5.3.4.3;15.4.3 Product Extinction;356
5.3.5;15.5 Conclusions;357
5.3.6;References;359
5.4;16 Composite Classical and Keynesian Adjustment Processes;361
5.4.1;16.1 Introduction;361
5.4.2;16.2 Notes on the Literature;362
5.4.3;16.3 Dual Dynamics;364
5.4.4;16.4 The Composite System;367
5.4.5;16.5 Some Preliminaries;368
5.4.5.1;16.5.1 Stability of the Keynesian Caseand the Composite System;369
5.4.5.2;16.5.2 Stability of the Classical Caseand the Composite System;372
5.4.6;16.6 A New Approach to the Stability of Composite Systems;375
5.4.7;16.7 An Alternative Investigation of the Stability of Composite Systems;381
5.4.8;16.8 Some Simulations Studies;384
5.4.9;16.9 Conclusions;389
5.4.10;References;398
6;Part IV Gravitation or Convergence in Classical Macro-Dynamics;401
6.1;17 Some Stability Properties of Goodwin's Growth Cycle Model;403
6.1.1;17.1 Introduction;403
6.1.2;17.2 An Extended Goodwin Cycle;403
6.1.3;17.3 The Goodwin Case Reconsidered;407
6.1.4;References;408
6.2;18 Endogenous Aspirations in a Model of Cyclical Growth;409
6.2.1;18.1 Introduction;409
6.2.2;18.2 A Model of Cyclical Growth;410
6.2.3;18.3 Discussion of the Model;413
6.2.3.1;18.3.1 The Implied Dynamics;413
6.2.3.2;18.3.2 Properties of the Steady State;414
6.2.3.3;18.3.3 The Phase Portrait of the Model;414
6.2.3.4;18.3.4 Local Stability;416
6.2.3.5;18.3.5 Asymptotic Stability in the Large;417
6.2.4;18.4 Conclusions;419
6.2.5;References;420
6.3;19 Partial Cooperation with Capital vs. Solidarity in a Model of Classical Growth;421
6.3.1;19.1 Introduction;421
6.3.2;19.2 Solidarity Among Workers;425
6.3.3;19.3 Partial Cooperation Between Labor and Capital;427
6.3.4;19.4 A Simple Completion of Goodwin's Growth Cycle and the Implications of Cooperation;433
6.3.5;19.5 Conclusions;438
6.3.6;References;443
6.4;20 The Classical Growth Cycle: Reformulation, Simulation and Some Facts;445
6.4.1;20.1 Introduction;445
6.4.2;20.2 A Growth Cycle Model with a Government Sector;449
6.4.3;20.3 Some Simulation Results;454
6.4.4;20.4 A Look at the Data;457
6.4.5;20.5 Concluding Remarks and Outlook;469
6.4.6;References;472
6.5;21 The Goodwin Distributive Cycle After Fifteen Years of New Observations;474
6.5.1;21.1 Introduction;474
6.5.2;21.2 The Growth Cycle Model: Basic Ingredients for a Limit Cycle Result;477
6.5.3;21.3 Exploring Growth Cycles for the US Economy: A Brief Reconsideration;479
6.5.4;21.4 The US Economy: Extended Data Set and Basic Econometric Issues;481
6.5.5;21.5 Business Cycles and Long Phase Cycles in the US Economy: Bivariate P-SPLINE Testing;483
6.5.6;21.6 Conclusions;486
6.5.7;References;488
6.6;22 Classical Dynamics in a General Keynes–Wicksell Model;490
6.6.1;22.1 Introduction;490
6.6.2;22.2 The General Model;491
6.6.3;22.3 Comparative Statics, Dynamics and the Steady State;497
6.6.4;22.4 Medium Run Dynamics;500
6.6.4.1;22.4.1 Adaptive Expectations;500
6.6.4.2;22.4.2 Regressive Expectations;503
6.6.5;22.5 Long Run Dynamics and Global Stability;504
6.6.6;22.6 Some Numerical Results;508
6.6.7;22.7 Conclusions;511
6.6.8;References;515