Capital theory ‘paradoxes’ and paradoxical results: resolved or continued?

Theodore Mariolis () and Lefteris Tsoulfidis ()

Evolutionary and Institutional Economics Review, 2016, vol. 13, issue 2, No 2, 297-322

Abstract: Abstract Capital theory controversies and ‘paradoxes’ showed that, due to price-feedback effects, the wage–production price–profit rate curves may display shapes inconsistent with the requirements of the neoclassical theory of value and distribution. Subsequent findings on a number of quite diverse actual single-product economies suggested that the impact of those effects is of limited empirical significance. This paper argues that, by focusing on the distributions of the eigenvalues and singular values of the system matrices, we can further study these issues and derive some meaningful theoretical results consistent with the available empirical evidence. Consequently, the real paradox, in the sense of knowledge vacuum and, thus, requiring further research, is the distributions of the characteristic values and not really the ‘paradoxes in capital theory’.

Keywords: Capital theory; Characteristic value distributions; Hyper-basic industry; Spectral decompositions; Wage–price–profit rate curves (search for similar items in EconPapers)
JEL-codes: B21 B51 C67 D57 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (6)

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Working Paper: Capital Theory ‘Paradoxes’ and Paradoxical Results: Resolved or Continued? (2015)
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DOI: 10.1007/s40844-016-0043-4

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