Some Recent Developments on the Explanation of the Empirical Relationship between Prices and Distribution

Jacobo Ferrer-Hernández () and Luis Daniel Torres-González ()
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Jacobo Ferrer-Hernández: New School for Social Research
Luis Daniel Torres-González: Benemérita Universidad Autónoma de Puebla

No CSWP54, Centro Sraffa Working Papers from Centro di Ricerche e Documentazione "Piero Sraffa"

Abstract: The paper complemets recent contributions towards the explanation of the regularities in the behaviour of prices and capital intensities as an effect of hypothetical changes in the rate of profit in empirical production-price models. It is shown that theoretical price and capital curvers, i.e. prices and capital values as a function of the rate of profits, depend on the product of the eigenvalues and what we call the eigenlabours - the representation of the labour vector in the space spanned by the eigenvectors of the input matrix. We report robust evidence that the eigenvalues by themselves cannot produce the curves regulary reported in the literature, but rather it is the joint action of the eigenvalues and the eigenlabours. It is conjectured that the tendency towards zero of the subdominant eigenlabours is driven by the statistical tendency towards the proportionally between the labour vector and the Perron-Frobenius eigenvector of the input matrix.

Keywords: Sraffian price models; price-profit rate curves; capital value; spectral representation; labour vector-Perron-Frobenius eigenvector relation (search for similar items in EconPapers)
JEL-codes: B51 C67 D57 (search for similar items in EconPapers)
Pages: 90 pages
Date: 2022-05-22
New Economics Papers: this item is included in nep-dem, nep-hme and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:ris:sraffa:0054

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