By Luigi Pasinetti
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Extra info for Essays on the Theory of Joint Production
Example text
It follows that H is also nonnegative. S The assumption is made, following Sraffa, that the internal rate of reproduction of nonbasic commodities (if there are any) is higher than the internal rate of reproduction of basic commodities. 9 Since no price can become negative in terms of any standard (within the interval, o ::s; 11 ::s; n), no price can fall faster than w as 11 is increased. It follows that 11 and w (in terms of any standard) must be inversely and monotonically related to each other.
L. 17) - can 'command' only part of the purchasing power deriving from prices. 23) is absorbed by profits. e. of Marxian values into prices. The linear operator (I - n H) - 1, where the m units of vertically integrated productive capacity are shown to playa crucial role, represents such 'transformation' in logical terms. e. 25) p=v while matrix H drops out 6 0\ the picture altogether. A particular unit of measurement for capital goods We may go back to the physical quantity system. So far in this analysis, all commodities have been measured in terms of the physical units that are commonly used to measure them (for example, tons, bushels, numbers).
A further step back yields G 3 and a still further step back yields G 4 , and so on. This logical process may be pursued to any higher order as we may choose, each step requiring premultiplication by G. 65), where they confer a specific economic meaning on the successive rounds of approximation to be carried out in the search for the equilibrium growth solution. 12 Production with fixed capital goods in general The whole analysis has been carried out so far on the simplifying assumption that a constant proportion of all fixed capital goods drops out of the production process each year.