By Gilbert Abraham-Frois
This booklet is worried with the connection among strategies of accumulation and points of distribution. The analyses of Ricardo and Marx are reevaluated and redeveloped within the mild of advances made via von Neumann, Sraffa and extra modern theoreticians. Joint construction structures are built-in into the research, which permits the authors to outline the impression of the concept of non-substitution, and to think again the matter of obsolescence and the alternative of approach.
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Extra resources for Prices, Profits and Rhythms of Accumulation
Such a phenomenon cannot happen when system (A,B) is indecomposable. It may happen, however, in a simpler case where only one method of production is available to produce both goods. Let a,=(l/3 3/2) 1,= 1 bt=(2 2)withrf=(l 0) These data are the same as those characterising the second method in the previous example. 30 for which is d= (1 0), 3 is positive at the maximum growth rate G= 1/3. It may be amazing to find out that at the maximum growth rate G as defined by von Neumann in a model which ignores consumption, the consumption level is however positive.
24 will return to this in chapter 6). Indeed, in I. 25). The difficulties underlined in the previous example also appear in the following example (see Schefold, 1978), where strong joint production prevails only in the first activity. Let and, with r = g: [B-(]+r)A] = 9 (1+r) 2-(l+r) 2 2 3 3(1 +r) 4-(l+r) 5 10 10 Several cases can be contemplated r=0 [B-(\-¥r)A] = [B-A -I? 26); owing to the free disposal2 assumption only method 1 can be used. Moreover, since the structure of demand is d= (79 4), method 1 produces an excess supply of good 2, and only good 1 is an economic good.
26 The efficiency frontier is parallel to the horizontal axis (see line M\M\). Owing to the structure of demand, only the first method is used, and the second good remains a free good. , r = 9/\ 1. \-r 4 At r = 9/11, we have M\ = (79/22 2/11). Then demand can be perfectly satisfied by using method 1 exclusively: one of either good will be arbitrarily considered as an economic good, while the other is a free good. At r = g > 9 / l l , demand can be satisfied by using a combination of methods (1) and (2).