# Eigenvalue Distribution and the Production Price-Profit Rate Relationship: Theory and Empirical Evidence

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## Abstract

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.

### Keywords

eigenvalue distribution production prices spectral analysis standard systems### JEL

B51 C67 D46 D57 E11## Preview

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© Japan Association for Evolutionary Economics 2011