Bellino, Enrico (2009): The Classical approach to distribution and the “natural system”.
Download (158kB) | Preview
The modern reformulation of Classical analysis of value and distribution built upon Sraffa’s Production of Commodities provides quite a general and open framework to study distributive relationships, that deserves to be still explored. The present work aims to go through these relationships according to the perspective ensuing from the notion of “natural economic system”, developed by Pasinetti. The natural economic system is a sort of ideal configuration, which allows to accomplish the potentialities of the production system concerning growth, employment and the satisfaction of final wants. Actual (capitalist) economies do not normally fulfil the “natural” configuration. But this configuration can be considered a reference point in order to discriminate between the conditions that have to be verified for the system to reproduce itself and grow according to its potentialities, and the conditions that have to be regarded as pertaining to the institutional sphere. On this perspective several indications can be drawn on various aspects. In this work we shall focus on the normative conclusions that can be drawn about income distribution. Firstly a description of the characteristics and the implications of the “natural” configuration of income distribution will be provided: we will focus on natural rates of profit (which are differentiated among sectors), on the natural level of wages and on the natural rate of interest. Secondly we will depict some instruments to orientate the actual set-up of capitalistic economies towards the natural configuration. In particular we will develop a notion of uniform natural profit rate and we will describe the consequent necessary (“natural”) financial system which allows the natural accumulation of capital to be realized in a capitalistic context, where profit rates tend to be uniform.
|Item Type:||MPRA Paper|
|Original Title:||The Classical approach to distribution and the “natural system”|
|Keywords:||Average natural profit rate; Classical political economy; Labour theory of value; Natural system; Natural profit rates; Prices; Sraffa framework; Structural change; Surplus approach|
|Subjects:||D - Microeconomics > D4 - Market Structure and Pricing > D46 - Value Theory
B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B51 - Socialist; Marxian; Sraffian
B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B12 - Classical (includes Adam Smith)
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E12 - Keynes; Keynesian; Post-Keynesian
D - Microeconomics > D3 - Distribution > D33 - Factor Income Distribution
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E23 - Production
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E11 - Marxian; Sraffian; Institutional; Evolutionary
|Depositing User:||Enrico Bellino|
|Date Deposited:||29. Apr 2009 07:29|
|Last Modified:||12. Feb 2013 10:24|
ARROW, K. J. (1991): “Ricardo’s work as viewed by Later Economists,” Journal of the History of Economic Thought, 13, 70–7.
BURMEISTER, E. (1984): “Sraffa, Labor Theories of Value, and the Economics of Real Wage Rate Determination,” Journal of Political Economy, 92(3), 508–526.
CHAMPERNOWNE, D. G. (1958): “Capital Accumulation and the Maintenance of Full Employment,” The Economic Journal, 68(270), 211–44.
GAREGNANI, P. (1983): “The Classical Theory ofWages and the Role of Demand Schedules in the Determination of Relative Prices,” The American Economic Review – Papers and Proceedings of the Ninety-Fifth Annual Meeting of the American Economic Association, 73(2), 309–313.
GAREGNANI, P. (1984): “Value and Distribution in the Classical Economists and in Marx,” Oxford Economic Papers, 36(2), 291–325.
GAREGNANI, P. (2007): “Professor Samuelson on Sraffa and the Classical economists,” The European Journal of the History of Economic Thought, 14(2), 181–242.
KAHN, R. (1959): “Exercises in the Analysis of Growth,” Oxford Economic Papers, 11(2), 143–56.
KALDOR, N. (1955-56): “Alternative Theories of Distribution,” The Review of Economic Studies, XXIII(2)(61), 83–100.
KALDOR, N. (1957): “A Model of Economic Growth,” The Economic Journal, 67(268), 591–624.
MANDLER, M. (1999): “Sraffian Indeterminacy in General Equilibrium,” The Review of Economic Studies, 66(3), 693–711.
PASINETTI, L. L. (1962): “Rate of Profit and Income Distribution in Relation to the Rate of Economic Growth,” The Review of Economic Studies, 29(4), 267–279.
PASINETTI, L. L. (1981): Structural Change and Economic Growth – A Theoretical Essay on the Dynamics of the Wealth of Nations. Cambridge University Press, Cambridge.
PASINETTI, L. L. (1988): “Sraffa on income ditribution,” Cambridge Journal of Economics, 12(1), 135–138.
PASINETTI, L. L. (2007): Keynes and the Cambridge Keynesians. Cambridge University Press, Cambridge.
PASINETTI, L. L. (2009, forthcoming): A Theory of value. Routledge, London, Selected writings edited by Enrico Bellino and Angelo Reati.
PHELPS, E. (1961): “The Golden Rule of Accumulation: A Fable for Growthmen,” The American Economic Review, 51(4), 638–43.
ROBINSON, J. V. (1956): The Accumulation of Capital. Macmillan, London.
SAMUELSON, P. A. (1956): “Economic theory and wages,” in The Impact of the Union, ed. by M. C. Wright. Kelley and Millman, New York.
SAMUELSON, P. A. (2007): “Classical and Neoclassical Harmonies and Dissonances,” European Journal of the History of Economic Thought, 14(2), 243–71.
SOLOW, R. M. (1979): “Another Possible Source ofWage Stickiness,” Journal of Macroeconomics, 1(1), 79–82.
SRAFFA, P. (1960): Production of Commodities by Means of Commodities – Prelude to a Critique of Economic Theory. Cambridge University Press, Cambridge.
VON NEUMANN, J. (1937): “A Model of General Economic Equilibrium”, in The Review of Economic Studies, XIII-XIV, 1945-46, pp. 1–9.