The Review of Austrian Economics

, Volume 26, Issue 2, pp 207–220

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

  • Theodore Mariolis
  • George Soklis
  • Eugenia Zouvela
Article

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 

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Copyright information

© Springer Science+Business Media, LLC 2012

Authors and Affiliations

  • Theodore Mariolis
    • 1
  • George Soklis
    • 1
  • Eugenia Zouvela
    • 1
  1. 1.Department of Public AdministrationPanteion UniversityAthensGreece

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