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Stigler on Ricardo

Author

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  • Kurz, Heinz D.

    (University of Graz)

Abstract

The paper scrutinises George Stigler’s interpretation of Ricardo's theory. Like many marginalists, he assesses Ricardo’s contribution in terms of marginalist theory. This confirms Piero Sraffa’s observation that by the end of the nineteenth century the analytical structure, content and genuine significance of the classical theory had been “submerged and forgotten”. However, Stigler's textual acuteness makes him see important elements of Ricardo’s analysis that resist the marginalist interpretation. His irritation can only have been increased by Sraffa’s exposition of Ricardo’s sur-plus-based theory of profits in volume I of the Ricardo edition. This contradicted mar-ginal productivity theory of profits. Stigler praises Sraffa’s edition beyond all measure, refrains however from discussing his interpretation. Things do not change after Sraffa in 1960 publishes a logically consistent formulation of the classical theory of value and distribution. Sraffa's interpretation challenged Stigler's ideological position, which, however, he did not feel the need, or possibility, to defend.

Suggested Citation

  • Kurz, Heinz D., 2018. "Stigler on Ricardo," Centro Sraffa Working Papers CSWP27, Centro di Ricerche e Documentazione "Piero Sraffa".
    • Handle: RePEc:ris:sraffa:0027
    as

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    References listed on IDEAS

    as
    1. Blaug,Mark, 1997. "Economic Theory in Retrospect," Cambridge Books, Cambridge University Press, number 9780521577014, January.
    2. Heinz Kurz, 2010. "Technical progress, capital accumulation and income distribution in Classical economics: Adam Smith, David Ricardo and Karl Marx," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 17(5), pages 1183-1222.
    3. Shaikh, Anwar, 2016. "Capitalism: Competition, Conflict, Crises," OUP Catalogue, Oxford University Press, number 9780199390632.
    4. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676, September.
    5. Mark Blaug, 2009. "The Trade-Off between Rigor and Relevance: Sraffian Economics as a Case in Point," History of Political Economy, Duke University Press, vol. 41(2), pages 219-247, Summer.
    6. Christian Gehrke & Heinz D. Kurz & Neri Salvadori, 2003. "Ricardo on Agricultural Improvements: a Note," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(3), pages 291-296, August.
    7. Morgan,Mary S., 2012. "The World in the Model," Cambridge Books, Cambridge University Press, number 9781107002975, January.
    8. Heinz D. Kurz, 2015. "David Ricardo: on the art of "elucidating economic principles" in the face of a "labyrinth of difficulties"," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 22(5), pages 818-851, October.
    9. repec:bla:scandj:v:91:y:1989:i:1:p:47-62 is not listed on IDEAS
    10. 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.
    11. Morgan,Mary S., 2012. "The World in the Model," Cambridge Books, Cambridge University Press, number 9780521176194, January.
    12. Robert Solow, 2010. "Stories about economics and technology," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 17(5), pages 1113-1126.
    13. Neisser, Hans, 1990. "The wage rate and employment in market equilibrium," Structural Change and Economic Dynamics, Elsevier, vol. 1(1), pages 141-163, June.
    14. George J. Stigler, 1952. "The Ricardian Theory of Value and Distribution," Journal of Political Economy, University of Chicago Press, vol. 60(3), pages 187-187.
    15. Paul A. Samuelson, 1977. "Correcting the Ricardo Error Spotted in Harry Johnson's Maiden Paper," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(4), pages 519-530.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. 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.
    2. 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.

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    More about this item

    Keywords

    David Ricardo; Ideology; Piero Sraffa; George Stigler; Value and distribution;
    All these keywords.

    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory

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