The Rarity of Reswitching Explained

Bertram Schefold ()
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Bertram Schefold: Johann Wolfgang Goethe-Universitat

No CSWP58, Centro Sraffa Working Papers from Centro di Ricerche e Documentazione "Piero Sraffa"

Abstract: Most studies of the frequency of reswitching and reverse capital deepening were based on two or three sector models and came to the conclusion that these phenomena are rare. Here it is shown that the probability of isolated reswitching tends to zero in large economic systems. The assumptions of the new mathematical theorems proposed are supported by an empirical enquiry. The randomness of input-output systems helps to explain the result. If the number of switch-points tends to infinity in large systems, it is not certain that even one represents a case of reverse capital deepening. The focus of the critique of capital will have to change.

Keywords: capital theory; reswitching; reverse capital deepening; Sraffian economics; input-output analysis (search for similar items in EconPapers)
JEL-codes: B24 C62 C67 D57 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2022-08-04
New Economics Papers: this item is included in nep-hme
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:sraffa:0058

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