Post-Keynesian

Figure 1: A Pattern Diagram1.0 Introduction In this example, I perturb parameters in an example of Bertram Schefold's. I was disappointed in that, as far as I can see, one can analyze the choice of technique in this example by the construction of the wage-rate of profits frontier. As far as I understand, this is not true for joint production in general. I guess I also need to find an example in which the physical life of a machine is at least three years so as to find a three-technique...

Figure 1: A Partition of Price-Wage Space for a Two-Commodity Reswitching Example1.0 Introduction This post generalizes my approach in Vienneau (2005). In that article, I present a Linear Programming (LP) problem for the firm. In the case of an economy that produces two commodities, one can present a graphical display that clarifies how Sraffa's equations arise. The dual LP is important in this development. Here, I show how that approach can work for a case in which rates of profits...

Figure 1: A Two-Dimensional Pattern Diagram The example in this working paper is of an economy in which two commodities are produced. Technical progress is modeled as decreasing the coefficients of production in one of the processes for producing corn. They decrease at a rate of σ of ten percent. Figure 2 shows how the pattern of switch points vary with technical progress. Initially, the Beta technique is cost-minimizing. Then it becomes a reswitching example. Around the switch point at...

I have uploaded another working paper: This article presents an example in which technical progress results in variations in the labor market. Around a switch point with a positive real Wicksell effect, a higher wage is associated with firms wanting to employer more labor per unit output of net product. Around a switch point with a reverse substitution of labor, firms in a particular industry want to hire more labor per unit output of gross product. Technical progress can bring about...

Figure 1: Regions for Basis Variables 1.0 Introduction I introduced a new way of visualizing the choice of technique for two-commodity models back in 2005. As far as I know, nobody has taken up this idea. I modify my method slightly by having labor advanced; wages are paid out of the surplus at the end of the year. I cite John Roemer in my paper linked previously. 2.0 Technology Table 1 specifies the technology I use for illustration. Each row lists the inputs needed to produce one...

Suppose one wants to quantitatively measure the growth in productivity over centuries. And one wants to look at specific commodities that can be said to have existed over such a long time. Think of a lumen of light or a food calorie. How can one do this? The definition of a price index over such a long time period is questionable. Adam Smith addressed this problem. Some would find his approach common sense. One could ask how long must a common laborer work to be able to afford the...

Despite his ignorance of the Cambridge Capital Controversy, Paul Romer's recent criticisms of mainstream macroeconomics have some good points. Typical Dynamic Stochastic General Equilibrium (DSGE) model time series, with exogenous shocks to certain parameters with specified probability distributions. And those parameters are named to suggest they have common language meanings. But there is no reason to think any such correspondence between the mathematics and the labels exist. I assume,...

I have been looking at the effects of perturbing parameters in models of the choice of technique. Now that I have one paper out of this research published, I thought I would recap where I am. I think I should be able to get at least another paper out of this. A challenge for me is to draw interesting economics out of these findings. In a sense, what I am doing is applied mathematics, albeit with more an emphasis on numerical exploration than proof of theorems. I claim that the development...

For a number of decades, Arrigo Opocher and Ian Steedman have been developing arguments that apply the CCC to industries and even individual firms. They also draw on mainstream literature in microeconomics, from the 1960s and 1970s. Their 2015 book is a major statement of their position. Since their book's publication, they have continued research in this vein. The CCC applies whenever you see a production function with capital measured in numeraire-units. This can be an aggregate...

Or, rather, I classify economists into two kinds on each of three dimensions (Table 1). Table 1: Classifications For Economists Emphasis on social reproductionEmphasis on allocating scarce resourcesMoney non-neutralMoney as a veilEconomic issues arise under competitive model, with all agents in possession of all information actually existingEconomic issues to be explained as a result of deviation from an ideal, competitive model I have written about the first dimension before. Classical...