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Wage, prices, rates of profit in a classical disequilibrium model

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  • Édith Klimovsky
  • Olivier Rosell
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    Abstract

    This paper deals with income distribution in two classical reproduction models in disequilibrium where wages are considered equivalent to the value of a given basket of commodities. These models can be distinguished by the assumption about the distribution of the value of the nonaccumulated part of production. We show that the relation between distribution variables is different in these two models. In the first one, the decreasing relation between the variation of the physical composition of wage and the rates of profit is limited to those sectors producing the involved wage-goods. In the second one, this decreasing relation concerns all the rates of profit which, contrary to the first case, only depend on changes in the value of the wage basket, whatever variations in its physical composition.

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    Bibliographic Info

    Article provided by L'Harmattan in its journal Cahiers d'économie Politique.

    Volume (Year): (2012)
    Issue (Month): 62 ()
    Pages: 143-156

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    Handle: RePEc:cpo:journl:y:2012:i:62:p:143-156

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    Related research

    Keywords: Classical theory; distribution; disequilibrium; wage; profit; reproduction;

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