IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/52179.html
   My bibliography  Save this paper

Causality and interdependence in Pasinetti's works and in the modern classical approach

Author

Listed:
  • Bellino, Enrico
  • Nerozzi, Sebastiano

Abstract

The formal representation of economic theories normally takes the form of a model, that is, a system of equations which connect the endogenous variables with the values of the parameters which are taken as given. Sometimes, it is possible to identify one or more equations which are able to determine a subset of endogenous variables priorly and independently of the other equations and of the value taken by the remaining variables of the system. The first group of equations and variables are thus said to determine causally the remaining variables. In Pasinetti’s works this notion of causality has often been emphasized as a formal property having the burden to convey some deep economic meaning. In this work, we will go through those Pasinetti’s works where this notion of causality plays a central role, with the purpose to contextualize it within the econometric debate of the Sixties, to enucleate its economic meaning and to show its connections with other fields of the modern classical approach.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:52179
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/52179/1/MPRA_paper_52179.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luigi L. Pasinetti, 2012. "Piero Sraffa and the future of economics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 36(6), pages 1303-1314.
    2. Wray, L Randall, 1992. "Alternative Theories of the Rate of Interest," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 16(1), pages 69-89, March.
    3. R. Cellini, 1992. "Il ruolo dell'econometria nel carattere scientifico dell'economia politica," Working Papers 143, Dipartimento Scienze Economiche, Universita' di Bologna.
    4. Andrea Terzi, 1986. "The Independence of Finance from Saving: A Flow-of-Funds Interpretation," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 9(2), pages 188-197, December.
    5. Luigi L. Pasinetti, 1962. "Rate of Profit and Income Distribution in Relation to the Rate of Economic Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 29(4), pages 267-279.
    6. Trevithick, J A, 1994. "The Monetary Prerequisites for the Multiplier: An Adumbration of the Crowding-Out Hypothesis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 18(1), pages 77-90, February.
    7. Andrea Terzi, 1987. "The Independence of Finance from Saving: A Flow-of-Funds Interpretation," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 9(2), pages 188-197, January.
    8. 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.
    9. 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.
    10. de Marchi, Neil & Gilbert, Christopher L, 1989. "History and Methodology of Econometrics: Introduction," Oxford Economic Papers, Oxford University Press, vol. 41(1), pages 1-11, January.
    11. Asimakopulos, A, 1983. "Kalecki and Keynes on Finance, Investment and Saving," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 7(3-4), pages 221-233, September.
    12. Vercelli,Allessandro, 1991. "Methodological Foundations of Macroeconomics," Cambridge Books, Cambridge University Press, number 9780521392945, November.
    13. Luigi L. Pasinetti, 1960. "A Mathematical Formulation of the Ricardian System," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 27(2), pages 78-98.
    14. Pasinetti,Luigi, 1993. "Structural Economic Dynamics," Cambridge Books, Cambridge University Press, number 9780521432825, November.
    15. Drakopoulos, Stavros A & Torrance, Thomas S, 1994. "Causality and Determinism in Economics," Scottish Journal of Political Economy, Scottish Economic Society, vol. 41(2), pages 176-193, May.
    16. J. A. Kregel, 1986. "A Note on Finance, Liquidity, Saving, and Investment," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 9(1), pages 91-100, September.
    17. Paul Davidson, 1986. "Finance, Funding, Saving, and Investment," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 9(1), pages 101-110, September.
    18. Pierangelo Garegnani, 2007. "Professor Samuelson on Sraffa and the classical economists," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 14(2), pages 181-242.
    19. Giovanni Cesaroni, 2001. "The finance motive, the Keynesian theory of the rate of interest and the investment multiplier," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 8(1), pages 58-74.
    20. Axel Leijonhufvud, 2008. "Between Keynes and Sraffa: Pasinetti on the Cambridge School," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 15(3), pages 529-538.
    21. Cavalieri, Duccio, 2000. "La causalità in economia [Causality in economics]," MPRA Paper 44969, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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".
    2. Joerg Bibow, 2005. "Liquidity Preference Theory Revisited—To Ditch or to Build on It?," Method and Hist of Econ Thought 0508003, University Library of Munich, Germany.
    3. Giovanni Cesaroni, 2001. "The finance motive, the Keynesian theory of the rate of interest and the investment multiplier," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 8(1), pages 58-74.
    4. Bellino, Enrico, 2009. "The Classical approach to distribution and the “natural system”," MPRA Paper 14901, University Library of Munich, Germany.
    5. Bertola, Giuseppe, 2000. "Macroeconomics of distribution and growth," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 9, pages 477-540, Elsevier.
    6. Schilirò, Daniele, 2019. "Luigi L. Pasinetti: An intellectual biography by Mauro L. Baranzini and Amalia Mirante. An analysis and comment," MPRA Paper 95330, University Library of Munich, Germany.
    7. Cardinale, Ivano, 2024. "Collective objectives, particular objectives, and structural conditions: On Pasinetti's natural economic system and the “institutional problem”," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 202-210.
    8. Dow, Alexander C & Dow, Sheila C, 1988. "Idle Balances and Keynesian Theory," Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(3), pages 193-207, August.
    9. 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.
    10. Kurose, Kazuhiro & Yoshihara, Naoki, 2019. "On the Ricardian invariable measure of value in general convex economies," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 539-549.
    11. Claudio Sardoni, 2019. "Investment and savings in a dynamic context," Working Papers 1/19, Sapienza University of Rome, DISS.
    12. Heinz D. Kurz, 2011. "The Contributions of Two Eminent Japanese Scholars to the Development of Economic Theory: Michio Morishima and Takashi Negishi," Chapters, in: Heinz D. Kurz & Tamotsu Nishizawa & Keith Tribe (ed.), The Dissemination of Economic Ideas, chapter 13, Edward Elgar Publishing.
    13. 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.
    14. Geoffrey Harcourt & Peter Kriesler, 2012. "Introduction [to Handbook of Post-Keynesian Economics: Oxford University Press: USA]," Discussion Papers 2012-33, School of Economics, The University of New South Wales.
    15. Sergio Cesaratto, 2017. "Beyond the traditional monetary circuit: endogenous money, finance and the theory of long-period effective demand," Department of Economics University of Siena 757, Department of Economics, University of Siena.
    16. Luigi L. Pasinetti, 2000. "Critique of the neoclassical theory of growth and distribution," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 53(215), pages 383-431.
    17. Chumbita, Joan Severo, 2024. "Revisión de los fundamentos del desarrollo económico según Alfred Marshall: rendimientos crecientes a escala, competencia y demanda efectiva," Ensayos de Economía 21275, Universidad Nacional de Colombia Sede Medellín.
    18. Fabrício J. Missio & Frederico G. Jayme Jr. & Gustavo Britto & José Luis Oreiro, 2015. "Real Exchange Rate and Economic Growth: New Empirical Evidence," Metroeconomica, Wiley Blackwell, vol. 66(4), pages 686-714, November.
    19. Luigi L. Pasinetti, 2000. "Critique of the neoclassical theory of growth and distribution," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 53(215), pages 383-431.
    20. Brancaccio, Emiliano & Garbellini, Nadia & Giammetti, Raffaele, 2018. "Structural labour market reforms, GDP growth and the functional distribution of income," Structural Change and Economic Dynamics, Elsevier, vol. 44(C), pages 34-45.

    More about this item

    Keywords

    causality; interdependence; modern classical approach; Ricardo theory distribution; Keynes’ analysis; ‘given quantities’; surplus approach; structural dynamics; vertical integration;
    All these keywords.

    JEL classification:

    • B00 - Schools of Economic Thought and Methodology - - General - - - History of Economic Thought, Methodology, and Heterodox Approaches
    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:52179. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.