# Testing Böhm-Bawerk’s theory of capital: Some evidence from the Finnish economy

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## Abstract

This paper considers the pure labour theory of value and Böhm-Bawerk’s theory of capital as approximations of Sraffa’s model of single production, and tests them with data from the Symmetric Input-output Tables of the Finnish economy. The results show that (i) in comparison with the labour values, the actual Böhm-Bawerkian production prices are ‘equally’ good or even better approximations of the actual Sraffian production prices and market prices; and (ii) the Sraffian production price-profit rate relationship is, by and large, governed by the differences in the Böhm-Bawerkian average periods of production.

## Keywords

Average period of production Böhm-Bawerk’s theory of capital Empirical labour theory of value Sraffian theory## JEL classification

B25 B51 C67 D46 D57## References

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