The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Neo-ricardian Economics

  • Heinz D. Kurz
  • Neri Salvadori
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2787

Abstract

This article deals with the revival of the classical theory of value and distribution, championed by Piero Sraffa. The general rate of profits and relative prices are shown to be determined exclusively in terms of the given system of production and real wages (or the share of wages). Prices generally depend on income distribution. So does the cost-minimizing technique. The ‘quantity of capital’ cannot be ascertained independently of prices and thus the rate of profits. Techniques cannot generally be ordered monotonically with the rate of profits. Marginalist ideas regarding input proportions and input prices therefore cannot generally be sustained.

Keywords

Actual vs. normal values Austrian economics Cantillon, W. Capital accumulation Capital theory Circular flow of production Classical distribution theories Classical economics Cost-minimizing behaviour Division of labour Economic growth Endogenous growth Intertemporal equilibrium theory Labour theory of value Labour’s share of income Laws of capitalism Long-period positions Marginalist theory of value and distribution Marx, K. Methodological individualism Mill, J. Neo-Ricardian economics New growth theory Petty, W. Physical real cost Profits Quesnay, F. Reswitching Ricardo, D. Robinson, J. Romer, P. Say’s Law Simultaneous equations Smith, A. Social surplus Sraffa, P. Stratification Technical change Torrens, R. Uniform rate of profits Wicksell effects 

JEL Classifications

B5 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Heinz D. Kurz
    • 1
  • Neri Salvadori
    • 1
  1. 1.