Eigenvalue Distribution and the Production Price-Profit Rate Relationship: Theory and Empirical Evidence
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- Mariolis, T. & Tsoulfidis, L. Evolut Inst Econ Rev (2011) 8: 87. doi:10.14441/eier.8.87
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A typical finding in many empirical studies is that the production price-profit rate relationship is, by and large, monotonic. This paper derives, in terms of the usual single-product model, the spectral conditions that make possible the appearance of such monotonicity. Furthermore, using data from input-output tables for a number of countries and years, it examines the extent to which actual economies fulfil those spectral conditions.