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The classical theory of normal price and the analysis of economic Changes: A comment on D'Orlando

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  • Fabio Ravagnani
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    Abstract

    This paper examines the critical remarks that D’Orlando (2005) addresses to the classical theory of value based on ‘normal’ positions and briefly comments on the alternative dynamic analysis of short-run prices that he recommends. In particular, the first part refutes D’Orlando’s considerations about the method traditionally adopted in classical analysis and discusses the claim that the characteristic structure of classical theory prevents consistent determination of the normal prices. The second part moves on to consider the basic elements of D’Orlando proposed short-period analysis and argues that they appear problematic on both theoretical and methodological grounds.

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    Bibliographic Info

    Paper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 104.

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    Length: 19
    Date of creation: Nov 2007
    Date of revision:
    Handle: RePEc:sap:wpaper:wp104

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    Keywords: Classical theory; Normal prices; Short-period.;

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