Capital Theory and Political Economy: Prices, Income Distribution and Stability


PreliminariesTheory of capital in historical perspectiveCapital in theories of value and distributionCapital in the broad classical approachCapital in the neoclassical theoryProduction with capital and the early neoclassical economistsSummary and conclusionsCapital theory controversiesCambridge capital theory controversiesProduction with produced means of productionSamuelson’s one-commodity worldFrom the one-commodity to the world of many commoditiesReswitching of techniques and the demand for capitalSummary and conclusionsAppendix 3.A: Samuelson’s and Pasinetti’s reswitching examplesPrice trajectories and the rate of profitPrices of production and their determinantsThe mathematics of the linear model of productionPrice paths using input–output data, BEA 2018The fixed capital model, BEA 2018The circulating capital model, BEA 2018Price paths using input–output data, USA 2014The fixed capital model, USA 2014, WIOD (2016)The circulating capital model, USA 2014Summary and conclusionsAppendix 4.A: Sources of data and estimating methodsWage rate of profit curves and technological changeIntroductionSurvey of the first empirical studiesTechnological change and wage rate of profit curvesThe choice of numéraires and the standard commodityWRP curves in 49 industries, USA 2007 and 2014WRP curves, circulating capital modelWRP curves, fixed capital modelDiscussion of empirical findingsSome recent developmentsSummary and conclusionsAppendix 5.A: Further testing of the randomness hypothesisDistribution of eigenvalues and the shape of price and wage rates of profit curvesBródy’s conjectureEigendecomposition, price trajectories and dimensionality reductionEigendecomposition and the circulating capital modelSecond-order approximation of PRP trajectoriesThe distribution of eigenvalues and the near linearities in PRP trajectoriesFactorization and the construction of a hyper-basic sectorThe Application of the SVD factorization methodThe fixed capital model and the hyper-basic industrySummary and conclusionsAppendix 6.A: Digression in the effective rankA simple but realistic linear model of productionInput–output data and the estimation of relative equilibrium pricesA Realistic numerical example and the estimation of direct pricesDirect prices, prices of production and market pricesThe Sraffian standard commodityPrices of production in circulating and fixed capital models I and IIPrices of production in a circulating capital modelPrices of production in a fixed capital model IPrices of production in a fixed capital model IIPrices of production/direct prices trajectoriesPP/DP trajectories, circulating capital modelPP/DP trajectories, fixed capital model IPP/DP trajectories, fixed capital model IIWage rate of profit curvesThe eigendecomposition and the approximations of price trajectoriesHyper-basic industrySummary and conclusionsSumming-upCapital theory debates in retrospectCapital theory debates in prospectConcluding remarks