Testing Böhm-Bawerk’s theory of capital: Some evidence from the Finnish economy
- First Online:
- Cite this article as:
- Mariolis, T., Soklis, G. & Zouvela, E. Rev Austrian Econ (2013) 26: 207. doi:10.1007/s11138-012-0187-3
- 156 Downloads
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.