Tag Archives: Sraffa Effects

1.0 Introduction I have not posted about a non-fluke switch point in a while. This is an example from Bertram Schefold. I have examined perturbations and variations of this example before. Here I present an example with tables exhibiting arithmetic. Is this any more transparent than examples presented with graphs? I have been listening to some lectures on YouTube, especially Richard Wolff. I now have another hypothesis why mainstream economists have been promoting lies, ignorance, and...

Figure 1: A Switch Point On The Wage Frontier with Wage Curves Tangent This post extends the example in my article in Structural Change and Economic Dynamics, suitably emended. Figure 2 shows an enlargement of part of the parameter space. The parameters of the point where the boundaries of Regions 1, 2, and 3 intersect are shown. In Region 1, the Beta technique is uniquely cost-minimizing for all feasible wages; there are no switch points. Region 2 is a reswitching example, with Beta...

Figure 1: Switch Points On The Axis For The Rate Of Profits And At r = -100 Percent This is an example of a fluke case in the analysis of the choice of technique. The interest in flukes, for me, is that they show how the characteristics of markets can change. They provide insight into structural economic dynamics, as Luigi Pasinetti calls it. I have previously shown a fluke case, with a switch point on the axis for the rate of profits with a real Wicksell effect of zero. A perturbation...

Figure 1: Real Factor Price Frontier1.0 Introduction I am planning on posting at an even slower rate for a while. This post continues my exploration of a way of visualizing the choice of technique proposed by Carlo Milana. In this post, I show how to correctly apply his visualization to an example from my 2017 ROPE paper. 2.0 Technology Two techniques are available for producing corn, the consumption good. Each technique consists of a flow-input, point-output technology, with a finite...

Maybe this post should be titled "Erratum" or "corrigendum". I have an example in my paper last year in which wage frontiers are supposed to vary with two parameters. One is the markup in the "iron" industry. And the other is σ t. The example should be as in Table 1. All the theory and the visualizations in the paper work out with this example. Table 1: Technology for Producing Steel and Corn InputIndustryIronCornAlphaBetaLabora0,1 = 1aα,0,2(t) = (5191/5770) e(1/10) - σ taβ,0,2 =...

Figure 1: Two Dimensional Pattern Diagram1.0 Introduction This post extends an example from Bertram Schefold. It presents markup pricing in an example with a machine that can be operated for two years or junked after one year. This is a case of joint production in which, unlike in some cases, the choice of technique can still be analyzed by the construction of the wage frontier. Also, I do not think the question of requirements for use enter in here, and all matrices are square. As usual,...

Figure 1: Real Factor Price Frontier1.0 Introduction Carlo Milana has proposed a new way of visualizing the choice of technique, including in the case of reswitching. This way of describing what he has done is not neccessarily how he thinks of it. In this post, I describe his approach with a reswitching example, in a model of the production of commodities by means of commodities. 2.0 Technology Table 1 shows the coefficients of production for this example. Coefficients of production...

Figure 1: A Switch Point and a Fake Switch Point on Wage Curves1.0 Introduction In the analysis of the choice of technique, I typically consider examples of technology with a finite number of techniques. For each technique, I find the wage as a function of the rate of profits. The outer envelope of these curves shows the cost-minimizing technique at each rate of profits (or each level of the wage). Points on more than one wage curve are switch points. This approach is valid when, for...

This post, as suggested, extends this one-good example. I assume a constant returns-to-scale technology, as specified in Tables 1 and 2. Labor is advanced to the capitalists, and wages are paid out of the surplus at the end of the year (period of production). The capitalists (incorrectly) expect the technology in existence at the start of the year to continue to exist. I assume prices of (re)production prevail. Table 1: Inputs for The Technology InputProcess(I)(II)(III)Labor30 eσ0,1(1 -...

Figure 1: A Pattern Diagram I have put up a working paper with the post title. Abstract: This article considers Harrod-neutral technical progress in the context of an analysis of the choice of technique. In a model of the production of commodities by means of commodities, neutral technical change is compatible with the reswitching of techniques, capital reversing, process recurrence, and the reverse substitution of labor. A taxonomy of fluke switch points is applied to an example,...