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 499, TERG Discussion Papers from Graduate School of Economics and Management, Tohoku 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

Pages: 28 pages
Date: 2026-06-28
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.50974/0002008309

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:toh:tergaa:499

Access Statistics for this paper

More papers in TERG Discussion Papers from Graduate School of Economics and Management, Tohoku University Contact information at EDIRC.
Bibliographic data for series maintained by Tohoku University Library ().