Capital Theory and Political Economy: Prices, Income Distribution and Stability

The Capital Theory Debates have seen new developments in recent years, with Piero Sraffa's critique of the neoclassical theory leading to complexities in income distribution and price predictions. This book summarizes the debates and issues, highlights the similarities and differences between approaches, and critically evaluates them in light of empirical evidence. The focus is on the price trajectories induced by changes in income distribution and the resulting shape of wage rates and frontier.

\n Format: Hardback
\n Length: 224 pages
\n Publication date: 31 May 2021
\n Publisher: Taylor & Francis Inc
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In recent years, a significant surge of developments has emerged within the realm of what is commonly referred to as the Capital Theory Debates. These debates primarily took place during the 1960s, stemming from Piero Sraffa's critical critique of the neoclassical theory, which posited that the prices of factors of production are directly influenced by their relative scarcities. Sraffa's groundbreaking analysis revealed that when income distribution undergoes changes, a complex web of intricacies emerges within the economic system, exerting profound impacts on prices that are often difficult to predict. These debates were revisited in the 1980s and have continued to gain prominence in recent times, alongside a parallel literature that has emerged among neoclassical economists, delving into the effects of shocks on an economy.

This comprehensive book serves as a summary of these debates and highlights the most recent developments within the field. It also identifies the similarities and differences between various approaches and critically evaluates them in the context of available empirical evidence. The central focus of the book lies in examining the price trajectories induced by changes in income distribution and the subsequent shape of wage rates of profit curves and frontiers. These issues hold immense significance in areas such as microeconomics, international trade, growth, technological change, and macro stability analysis.

Each chapter in this book begins with an exploration of the theoretical underpinnings involved, followed by their formalization and subsequent operationalization. Specifically, the variables of the classical theory of value and distribution are meticulously defined and quantified using extensive input-output data from numerous major economies, primarily the USA, spanning long periods of time. The empirical findings not only align with the predictions of the theory but also provide valuable insights and further refine our understanding of these complex phenomena.

In conclusion, the Capital Theory Debates have witnessed a remarkable evolution, driven by Sraffa's critique and the ongoing exploration of economic dynamics. This book serves as a valuable resource for scholars, researchers, and policymakers seeking to delve deeper into these debates and gain a comprehensive understanding of the intricate relationship between capital, income distribution, and economic outcomes.

\n Weight: 520g\n
Dimension: 242 x 160 x 21 (mm)\n
ISBN-13: 9780815375654\n \n