Download this Paper Open PDF in Browser

The 'Sraffian' Critique of General Equilibrium Theory, and the Classical-Keynesian Alternative

64 Pages Posted: 21 May 2000  

Fabio Petri

University of Siena - Department of Economics

Date Written: July 1999

Abstract

The paper surveys the criticisms of general equilibrium theory advanced by Sraffian authors in the last twenty-five years. It is argued that an important change undergone by general equilibrium theory, from long-period versions to neo-Walrasian versions, has made it very difficult for neoclassical theorist to grasp the importance of the critique of the conception of capital as a single factor. This conception was indispensable to neoclassical long-period equilibria, i.e. equilibria reachable through time-consuming disequilibrium. Neo-Walrasian models are argued to be unable to indicate the tendencies of economies where adjustments to equilibrium are not instantaneous. They are shown to provide no foundation for neoclassical macroeconomics; these foundations lie on the contrary in the conception of capital as a single factor. In the second part of the paper it is argued that a solid alternative to the neoclassical approach exists already: the classical approach to wages and the Keynesian approach to employment and growth.

JEL Classification: D50, E11, E22

Suggested Citation

Petri, Fabio, The 'Sraffian' Critique of General Equilibrium Theory, and the Classical-Keynesian Alternative (July 1999). Available at SSRN: https://ssrn.com/abstract=199894 or http://dx.doi.org/10.2139/ssrn.199894

Fabio Petri (Contact Author)

University of Siena - Department of Economics ( email )

Piazza S. Francesco, 7
Siena, I-53100
Italy
+39 05 77232615 (Phone)
+39 05 77232661 (Fax)

Paper statistics

Downloads
579
Rank
38,105
Abstract Views
2,520