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EXISTENCE OF THE STANDARD SYSTEM IN THE MULTIPLE‐PRODUCTION CASE: A SOLUTION TO THE MANARA PROBLEM
Author(s) -
Dupertuis MichelStéphane,
Sinha Ajit
Publication year - 2009
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.2008.00349.x
Subject(s) - production (economics) , observer (physics) , perspective (graphical) , economics , mathematical economics , production system (computer science) , standard system , computer science , microeconomics , physics , engineering , construction engineering , quantum mechanics , artificial intelligence
In this paper we show that the Manara problem in the case of Sraffa's generalized multiple‐production case arises due to the presence of superfluous processes of production. We argue that ‘goods’ should be defined from the perspective of the system and not the observer. We provide a mathematical procedure to remove superfluous processes from the construction of Sraffa's Standard system. Once this is done, the Manara problem disappears.