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Revisiting fixed capital models in the Sraffa framework

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  • Biao Huang

    (Renmin University of China)

Abstract

Von Neumann (Review of Economics Studies 13(1):1–9, 1945) and Sraffa (Production of commodities by means of commodities. Prelude to a critique of economic theory. Cambridge University Press, Cambridge, 1960) revived the classical ideas of treating fixed capital as a special case of joint production. Sraffa’s model with a single machine that has constant efficiency has been widely generalised. Among such generalisations, Salvadori’s contribution (Value, distribution and capital. Essays in honour of Pierangelo Garegnani, Routledge, London, pp 270–285, 1999) not only re-ignited research interest in the field, but also reshaped scholastic understanding of the importance of machines’ efficiencies with regard to fixed capital models. Such novel insights make it necessary to revisit the development of fixed capital models in the Sraffa framework. In this paper these models are surveyed with a focus on the properties of the cost-minimising technique in each model.

Suggested Citation

  • Biao Huang, 2019. "Revisiting fixed capital models in the Sraffa framework," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(2), pages 351-371, July.
    • Handle: RePEc:spr:epolit:v:36:y:2019:i:2:d:10.1007_s40888-019-00147-7
    DOI: 10.1007/s40888-019-00147-7
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    References listed on IDEAS

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    1. Kurz, Heinz D. & Salvadori, Neri, 2003. "Fund-flow versus flow-flow in production theory: Reflections on Georgescu-Roegen's contribution," Journal of Economic Behavior & Organization, Elsevier, vol. 51(4), pages 487-505, August.
    2. Christian Lager, 2006. "The Treatment of Fixed Capital in the Long Period," Economic Systems Research, Taylor & Francis Journals, vol. 18(4), pages 411-426.
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    4. J. v. Neumann, 1945. "A Model of General Economic Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 13(1), pages 1-9.
    5. Heinz Kurz & Neri Salvadori, 2005. "Removing an 'insuperable obstacle' in the way of an objectivist analysis: Sraffa's attempts at fixed capital," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 12(3), pages 493-523.
    6. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676, January.
    7. Christian Gehrke, 2011. "The Joint Production Method in the Treatment of Fixed Capital: A Comment on Moseley," Review of Political Economy, Taylor & Francis Journals, vol. 23(2), pages 299-306, April.
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    Cited by:

    1. Vienneau, Robert L., 2021. "Fluke Switch Points in Pure Fixed Capital Systems," Centro Sraffa Working Papers CSWP48, Centro di Ricerche e Documentazione "Piero Sraffa".

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    More about this item

    Keywords

    Fixed capital; Sraffa; Cost-minimising technique; Transferable machines; Jointly utilised machines;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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