Can we meaningfully speak of changes in price under the regime of changes in techniques?

Cockshott, P. and Sinha, A. (2008) Can we meaningfully speak of changes in price under the regime of changes in techniques? Review of Political Economy, 20(3), pp. 393-403. (doi:10.1080/09538250802170418)

[img]
Preview
Text
4505.pdf - Accepted Version

108kB

Abstract

This paper presents a simulation exercise on Sraffa's system under various types of technical changes to show that the direction of changes in prices of commodities is contingent on the choice of the numeraire. Thus, such a comparison of prices in two systems turns out to be meaningless. This result points to the arbitrary nature of the neoclassical supply functions, as they inevitably compare prices across several Sraffa systems on the basis of an arbitrarily chosen numeraire. We anticipated such a result from our reading of Sraffa as part of his 'prelude to a critique of economic theory'.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Cockshott, Dr William
Authors: Cockshott, P., and Sinha, A.
Subjects:H Social Sciences > HB Economic Theory
College/School:College of Science and Engineering > School of Computing Science
Journal Name:Review of Political Economy
Publisher:Routledge
ISSN:0953-8259
ISSN (Online):1465-3982
Published Online:03 July 2008
Copyright Holders:Copyright © 2008 Taylor and Francis
First Published:First published in Review of Political Economy 20(3):393-403
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

University Staff: Request a correction | Enlighten Editors: Update this record