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THE MODIFICATION OF PASINETTI'S DYNAMIC LABOUR THEORY OF VALUE
Author(s) -
Oda Sobei H.
Publication year - 1991
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/j.1467-999x.1991.tb00367.x
Subject(s) - commodity , economics , consumption (sociology) , value (mathematics) , microeconomics , unit (ring theory) , final demand , labor theory of value , econometrics , production (economics) , market economy , mathematics , social science , mathematics education , sociology , statistics
This paper discusses how much labour is directly or indirectly necessary for present or future consumption of each commodity. Defining a vertically hyper‐integrated labour coefficient for every commodity. Pasinetti claims that it represents the labour which is dynamically necessary for a unit consumption of the commodity. However, if technology and annual growth rates of consumption demand are given, vertically hyper‐integrated labour coefficients are not determined uniquely. This paper demonstrates this result and formulates the improved vertically hyper‐integrated labour coefficients which are determined uniquely and thus readily applicable to both theoretical and empirical study of technical progress in non‐proportionally growing economies.