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Pierangelo Garegnani: economics with a critical orientation

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  • Heinz D. Kurz

    (University of Graz)

Abstract

In this paper we will focus on some of the problems in the theory of value and distribution that Sraffa and Garegnani have tackled in their path-breaking works. In particular, the focus will be first on the identification of the cost-minimizing system of production from a set of technical alternatives and its properties in terms of the general rate of profits and the set of relative prices corresponding to a given real wage rate. Next we will discuss briefly in highly abstract terms and in the context of an utterly simple one-good economy the process of the diffusion of new techniques and the gradual elimination of old techniques, which once were cost minimizing, but no longer are. The issue at hand is an aspect of what Schumpeter called “creative destruction.†Finally, we will analyse the non-conventional (that is, non-marginalist) findings in capital theory put forward by Sraffa (1960) and further elaborated by Garegnani (1970, 1990 etc.). When their theoretical possibility had been firmly established, they were questioned on empirical grounds. The problem with this questioning is that it is far from clear, how it could convincingly be shown that some of the phenomena under scrutiny do, or do not, exist in the real world. After all, what is at issue is the behaviour of the economic system as a whole, and the data situation on the basis of which the question could possibly be decided is perhaps not up to the problem at hand. In this respect, we will point out some of the difficulties to investigate the situation in terms of data taken from input-output tables.

Suggested Citation

  • Heinz D. Kurz, 2021. "Pierangelo Garegnani: economics with a critical orientation," Bulletin of Political Economy, Bulletin of Political Economy, vol. 15(2), pages 147-162, December.
    • Handle: RePEc:awu:journl:v:15:y:2021:i:2:p:147-162
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    References listed on IDEAS

    as
    1. Ian Steedman, 2020. "Fixed capital in the corn‐tractor model," Metroeconomica, Wiley Blackwell, vol. 71(1), pages 49-56, February.
    2. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676, November.
    3. Heinz D. Kurz, 2020. "The theory of value and distribution and the problem of capital," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 17(2), pages 241-264, September.
    4. Heinz D. Kurz, 2017. "Technical Progress and the Diffusion of Innovations: Classical and Schumpeterian Perspectives," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 12(3), pages 418-449, September.
    5. Heinz D. Kurz, 2012. "Pierangelo Garegnani (1930--2011)," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 19(2), pages 303-311, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Garegnani; Sraffa’s price system; choice of techniques; creative destruction; capital theory; probability of reswitching and capital reversing; input-output tables.;
    All these keywords.

    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Wicksellian)
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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