Sraffian Thoughts in Full Marginalist Dress
9 Pages Posted: 30 Sep 2013
Date Written: November 2013
In the single‐products economy considered here, every industry has a constant‐elasticity‐of‐substitution unit cost function; moreover that constant‐elasticity‐of‐substitution is the same for each industry (0 < σ < 1). When this strongly ‘marginalist’ system is looked at from a Sraffian perspective, it is found that some significant properties of the system are not in line with normal marginalist expectations.
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