On the Inconsistence between the Long-Period Method and the Assumption of Given Quantities

18 Pages Posted: 27 Jul 2009  

Fabio D'Orlando

University of Cassino and Cream Economic Center

Sergio Nisticò

University of Cassino - Department of Economics

Date Written: July 27, 2009

Abstract

According to Sraffian economists, both the aggregate and the general equilibrium versions of the neoclassical theory suffer from a logical inconsistence that prevents them from identifying a long-period position. The aim of this paper is to show that also Sraffa’s approach, based on the assumption of given sectoral outputs, brings about an inconsistence between his theory and the long-period method. The main upshot of our argument is that sectoral outputs can legitimately be left to a separate stage of the theory only insofar as the long-period method is dropped and the classical-type theory is reconstructed within the temporary equilibrium method.

Keywords: classical-type approach, Sraffian theory, long period, short period, temporary equilibrium

JEL Classification: D11, D21, B12, B41

Suggested Citation

D'Orlando, Fabio and Nisticò, Sergio, On the Inconsistence between the Long-Period Method and the Assumption of Given Quantities (July 27, 2009). Available at SSRN: https://ssrn.com/abstract=1439757 or http://dx.doi.org/10.2139/ssrn.1439757

Fabio D'Orlando (Contact Author)

University of Cassino and Cream Economic Center ( email )

Cassino
Italy

HOME PAGE: http://www.docente.unicas.it/fabio_dorlando

Sergio Nisticò

University of Cassino - Department of Economics ( email )

Cassino
Italy

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