IDEAS home Printed from https://ideas.repec.org/h/spr/spshcp/978-3-031-23643-3_6.html
   My bibliography  Save this book chapter

The Classical Theory of Wages and the Role of Demand Schedules in the Determination of Relative Prices

In: Capital Theory, the Surplus Approach, and Effective Demand

Author

Listed:
  • Pierangelo Garegnani

    (Roma Tre University)

Abstract

The paper argues that in neoclassical theory, the role of demand functions in determining prices depends on their role in determining distribution by influencing the ‘relative scarcity’ of the ‘factors of production’. It follows that in the approach of Adam Smith and Ricardo, who did not explain distribution in this way, those functions would play no role in determining relative prices. These conclusions help to distinguish the neoclassical notion of commodity demand schedule from the notion of ‘effectual demand’ of Smith and Ricardo, and thus cast doubt on the possibility of finding in the classical authors an explanation of relative prices along the lines of the later neoclassical theory.

Suggested Citation

  • Pierangelo Garegnani, 2024. "The Classical Theory of Wages and the Role of Demand Schedules in the Determination of Relative Prices," Springer Studies in the History of Economic Thought, in: Roberto Ciccone (ed.), Capital Theory, the Surplus Approach, and Effective Demand, pages 297-303, Springer.
    • Handle: RePEc:spr:spshcp:978-3-031-23643-3_6
    DOI: 10.1007/978-3-031-23643-3_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Machado, Pedro S. & Trigg, Andrew B., 2021. "On absolute and comparative advantage in international trade: A Pasinetti pure labour approach," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 375-383.
    2. Olivier Rosell, 2013. "L’apport de Robert TORRENS à la théorie Ricardienne du salaire naturel," Working Papers hal-04141164, HAL.
    3. Sergio Cesaratto, 2019. "Heterodox economics and Economic Anthropology: reflections prompted by two books," Department of Economics University of Siena 807, Department of Economics, University of Siena.
    4. Antonella Stirati, 2022. "Alcune note sul contributo di Garegnani all'analisi economica (Some notes on Garegnani's contribution to economic analysis)," Moneta e Credito, Economia civile, vol. 75(299), pages 251-265.
    5. Bellino , Enrico & Nerozzi, Sebastiano, 2015. "Causality and interdependence in Pasinetti’s works and in the modern classical approach," Centro Sraffa Working Papers CSWP10, Centro di Ricerche e Documentazione "Piero Sraffa".
    6. Neri Salvadori & Rodolfo Signorino, 2014. "Adam Smith on Monopoly Theory. Making good a lacuna," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(2), pages 178-195, May.
    7. Cláudio Gontijo, 2004. "Arrow-Debreu and the classical and neoclassical economics," Textos para Discussão Cedeplar-UFMG td241, Cedeplar, Universidade Federal de Minas Gerais.
    8. Meacci, Ferdinando, 2004. "The competition-of-capitals doctrine and the wage-profit relationship," MPRA Paper 20118, University Library of Munich, Germany, revised 2006.
    9. Persefoni Tsaliki & Lefteris Tsoulfidis, 2015. "Classical Economists, Marx and Marshall on Dominant Technique," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2015(2), pages 21-36.
    10. Neri Salvadori & Rodolfo Signorino, 2013. "The Classical Notion of Competition Revisited," History of Political Economy, Duke University Press, vol. 45(1), pages 149-175, Spring.
    11. Bellino, Enrico & Nerozzi, Sebastiano, 2013. "Causality and interdependence in Pasinetti's works and in the modern classical approach," MPRA Paper 52179, University Library of Munich, Germany.
    12. Neri Salvadori & Rodolfo Signorino, 2016. "Competition," Chapters, in: Gilbert Faccarello & Heinz D. Kurz (ed.), Handbook on the History of Economic Analysis Volume III, chapter 6, pages 70-81, Edward Elgar Publishing.
      • Salvadori, Neri & Signorino, Rodolfo, 2011. "Competition," MPRA Paper 38387, University Library of Munich, Germany.
    13. repec:drm:wpaper:2013-39 is not listed on IDEAS
    14. Michele Bee & Juan Pablo Gama, 2022. "A process of demand discovery from a smithian perspective," Textos para Discussão Cedeplar-UFMG 647, Cedeplar, Universidade Federal de Minas Gerais.
    15. Birolo, Adriano, 2010. "The path of a scholar," MPRA Paper 30734, University Library of Munich, Germany.
    16. Alejandro Sancho, 1997. "Excedente, valor y distribución en las teorías clásica y marxista del crecimiento," Apuntes. Revista de ciencias sociales, Fondo Editorial, Universidad del Pacífico, vol. 24(41), pages 105-128.
    17. Arena, Richard, 1987. "La dynamique économique : nouveaux débats, nouvelles perspectives," L'Actualité Economique, Société Canadienne de Science Economique, vol. 63(1), pages 77-117, mars.
    18. Meacci, Ferdinando, 2014. "Ricardo's and Malthus's common error in their conflicting theories of the value of labour," MPRA Paper 55948, University Library of Munich, Germany.
    19. Bellino, Enrico, 2009. "The Classical approach to distribution and the “natural system”," MPRA Paper 14901, University Library of Munich, Germany.
    20. Ariel Dvoskin & Germán David Feldman & Guido Ianni, 2020. "New‐structuralist exchange‐rate policy and the pattern of specialization in Latin American countries," Metroeconomica, Wiley Blackwell, vol. 71(1), pages 22-48, February.
    21. Maria Cristina Marcuzzo & Annalisa Rosselli, 1994. "Ricardo's Theory of Money Matters," Revue Économique, Programme National Persée, vol. 45(5), pages 1251-1268.
    22. Tsoulfidis, Lefteris, 2018. "Ricardo’s Theory of Value is Still Alive and Well in Contemporary Capitalism," MPRA Paper 85822, University Library of Munich, Germany, revised 10 Apr 2018.
    23. Gary Mongiovi, 2021. "Pierangelo Garegnani and the revival of the ‘submerged and forgotten’ surplus approach," Bulletin of Political Economy, Bulletin of Political Economy, vol. 15(2), pages 163-184, December.
    24. Tsoulfidis, Lefteris, 2017. "Ricardo’s Theory of Value is Alive and Well in Contemporary Capitalism," MPRA Paper 96491, University Library of Munich, Germany, revised 11 Oct 2019.
    25. Ciccone, Michele, 2022. "Some notes on Ricardo's analysis of the convergence process of the market rate of interest to the natural rate," MPRA Paper 112887, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:spshcp:978-3-031-23643-3_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.