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On Non‐self‐replacing States
Author(s) -
Chiodi Guglielmo
Publication year - 1998
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/1467-999x.00041
Subject(s) - economics , production (economics) , capital (architecture) , product (mathematics) , reproduction , microeconomics , state (computer science) , neoclassical economics , mathematical economics , computer science , mathematics , ecology , algorithm , biology , history , geometry , archaeology
The purpose of the paper is to show why the assumption of a non ‐self‐replacing state in Sraffa’s system, with single‐product industries and circulating capital, could jeopardize the role of production prices in making the reproduction of the system possible. As a result, this assumption is not a merely simplifying, but rather a ‘characterizing’ assumption, in so much as it changes in some fundamental respect the main results of the analysis. Specifically, unless self‐replacement is assumed, the laws of returns (and therefore quantity ‐considerations) cannot be ignored.