Some Recent Developments IN The Explanation of The Empirical Relationship Between Prices and Distribution

Regularity in price changes as an effect of changes in distribution

Jacobo Ferrer-Hernández and Luis Daniel Torres-González

Contributions to Political Economy, 2022, vol. 41, issue 1, 29-57

Abstract: The paper complements 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 profits in empirical production-price models. It is shown that theoretical price and capital curves, 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 regularly 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 proportionality between the labour vector and the Perron–Frobenius eigenvector of the input matrix.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/cpe/bzac002 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:copoec:v:41:y:2022:i:1:p:29-57.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Contributions to Political Economy is currently edited by Jacqui Lagrue

More articles in Contributions to Political Economy from Cambridge Political Economy Society Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().