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Sraffa's System: Equal Rate of Profits and the Notion of Centre of Gravitation

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  • Ajit Sinha
  • Michel-Stéphane Dupertuis

Abstract

This paper argues that the condition of uniform rate of profits in Sraffa's system is not based on his implicit assumption that the system is at the 'equilibrium' or the center of gravitation. It is rather a logical requirement of a reproducing system of basic goods as long as prices are not imposed from outside the system. This condition holds irrespective of supplies being equal to their respective effectual demands. It conjectures that Sraffa could have arrived at this conclusion through his analysis of the . On the basis of this result, a critique of the received interpretation, led by Garegnani, of Sraffa's prices is developed.

Suggested Citation

  • Ajit Sinha & Michel-Stéphane Dupertuis, 2009. "Sraffa's System: Equal Rate of Profits and the Notion of Centre of Gravitation," Post-Print hal-00683159, HAL.
    • Handle: RePEc:hal:journl:hal-00683159
    DOI: 10.1016/j.jebo.2009.03.014
    Note: View the original document on HAL open archive server: https://hal.science/hal-00683159
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    References listed on IDEAS

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    1. Samuelson, Paul A. & Etula, Erkko M., 2006. "Testing to confirm that Leontief-Sraffa matrix equations for input/output must obey constancy of returns to scale," Economics Letters, Elsevier, vol. 90(2), pages 183-188, February.
    2. Pierangelo Garegnani, 2024. "Value and Distribution in the Classical Economists and Marx," Springer Studies in the History of Economic Thought, in: Roberto Ciccone (ed.), Capital Theory, the Surplus Approach, and Effective Demand, pages 305-340, Springer.
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    4. Steedman, Ian, 1984. "Natural Prices, Differential Profit Rates and the Classical Competitive Process," The Manchester School of Economic & Social Studies, University of Manchester, vol. 52(2), pages 123-140, June.
    5. Michel-Stéphane Dupertuis & Ajit Sinha, 2009. "A Sraffian critique of the classical notion of centre of gravitation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(6), pages 1065-1087, November.
    6. Hahn, Frank, 1982. "The Neo-Ricardians," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 6(4), pages 353-374, December.
    7. Joan Robinson, 1961. "Prelude To A Critique Of Economic Theory," Oxford Economic Papers, Oxford University Press, vol. 13(1), pages 53-58.
    8. Ajit Sinha, 2007. "Sraffa and the Assumption of Constant Returns to Scale: A Critique of Samuelson and Etula," Contributions to Political Economy, Cambridge Political Economy Society, vol. 26(1), pages 61-70.
    9. Ajit SINHA & Michel-Stéphane DUPERTUIS, 2009. "Sraffa And The Question Of Equilibrium," Cahiers d’économie politique / Papers in Political Economy, L'Harmattan, issue 56, pages 91-100, January -.
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    3. Biagio Bossone, 2021. "Bank Seigniorage in a Monetary Production Economy," Working Papers PKWP2111, Post Keynesian Economics Society (PKES).

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