Re: [OPE-L] standard commodity

From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Fri Mar 11 2005 - 00:30:28 EST

Dear Ian, Take a look at Sraffa's equations on page 6.
Of course, later Sraffa moves away from the classical
tradition and considers wages a post factum because he
wants to analyse the changes in prices due to changes
in distribution. But our purpose is different, so we
don't need to do that. Keeping wages as real and
treating it as part of total capital expenditure does
not change the basic property of Sraffian prices.
Cheers, ajit
--- Ian Wright <iwright@GMAIL.COM> wrote:
> Paul and Ajit
> I have an initial question for clarification. I
> thought that the basic
> Sraffian price equation (this from memory, so may be
> wrong):
> Ap(1+r) + aw = p
> (A = matrix of io coefficients, p = price vector r =
> scalar profit, a
> = labour vector, w  = scalar wage)
> expresses wages in terms of a price scalar, so that
> the net product is
> split according to nominal (price) terms, not
> physical terms. In your
> paper, you have the real wage as a vector of
> commodities. What am I
> missing?
> Thanks,
> -Ian.

Do you Yahoo!?
Yahoo! Small Business - Try our new resources site!

This archive was generated by hypermail 2.1.5 : Sun Mar 13 2005 - 00:00:01 EST