The Measurement of Prices of Production: An Alternative Approach
This paper analyzes the theoretical and methodological issues related to the empirical measurement of prices of production and wage-profit curves. A number of shortcomings of the standard approach are discussed, focusing in particular on the neglect of capital stock matrices and on the empirically objectionable assumption of uniform profit rates. An alternative approach for the empirical analysis of wage-profit curves and prices of production is proposed and its main properties are investigated using a new dataset on the German economy (1991--99). It is suggested that a Leontief-Bródy approach (augmented by profit rate differentials) is more appropriate for the analysis of wage-profit curves and prices of production than the purely theoretically oriented Sraffa-von Neumann framework.
Year of publication: |
2012
|
---|---|
Authors: | Flaschel, Peter ; Franke, Reiner ; Veneziani, Roberto |
Published in: |
Review of Political Economy. - Taylor & Francis Journals, ISSN 0953-8259. - Vol. 24.2012, 3, p. 417-435
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Labor productivity and the law of decreasing labor content
Flaschel, Peter, (2010)
-
Labour productivity and the law of decreasing labour content
Flaschel, Peter, (2013)
-
Labor productivity and the law of decreasing labor content
Flaschel, Peter, (2010)
- More ...