From Multipliers to the Distribution of Income: Connecting Leontief and Sraffa

Albert E. Steenge ()
Additional contact information
Albert E. Steenge: University of Groningen

Chapter Chapter 12 in A Reflection on Sraffa’s Revolution in Economic Theory, 2021, pp 361-389 from Palgrave Macmillan

Abstract: Abstract The aim of this chapter is to contribute to our understanding of the relation between Leontief-based and Sraffa-based modelling. To this end we take a second look at the core properties of models belonging to either of these ‘schools’. We focus on the well-known open static Leontief model with one primary factor, and explore how this model behaves if we replace the traditional input coefficients matrix by a matrix of extended input coefficients that capture the real pay accruing to the wage earners. We show that capital can be straightforwardly introduced, and that this model generates a precise expression for the relation between the rate of profits and the wage rate. We finish by discussing the connections between this ‘extended’ Leontief model and Sraffa’s single product models.

Keywords: Input-output model; Extended input coefficients; Distribution of income; Duality (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:pshchp:978-3-030-47206-1_12

Ordering information: This item can be ordered from
http://www.palgrave.com/9783030472061

DOI: 10.1007/978-3-030-47206-1_12

Access Statistics for this chapter

More chapters in Palgrave Studies in the History of Economic Thought from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().