Where Do Competitive Prices Go? The Long Run Behaviour of a Neoclassical Production Economy, and the Classical Prices of Production

Naoki Yoshihara and Roberto Veneziani

No 780, Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: We analyse a general, dynamic neoclassical production economy. We show that any sequence of competitive equilibrium prices converges to a vector of production prices. Thus, far from being a special case, classical prices of production are the attractor of neoclassical equilibrium prices. Indeed, and this is a second insight, prices of production turn out to be the (unique) supporting price vector of the turnpike capital accumulation path. Finally, our results have some implications for theories of exploitation and class, and distributive justice more generally.

Keywords: Neoclassical Production Economies; Prices of Production; Intertemporal Walrasian Equilibrium Prices; Euler Equation (search for similar items in EconPapers)
JEL-codes: B51 C61 C62 D46 D51 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2026-07
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hituec:780

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