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On the “Logical Necessity” of a Uniform Rate of Profit in Sraffa’s Production of Commodities by Means of Commodities

Author

Listed:
  • Daria Pignalosa
  • Paolo Trabucchi

Abstract

The paper discusses the analytical arguments put forward by Sinha to prove the purely “logical” necessity of a uniform rate of profit in Sraffa’s Production of Commodities by Means of Commodities and hence the independence of that condition from any consideration concerning competition. We find that such arguments cannot be accepted. In fact, far from establishing the existence of a contradiction that would be implied by unequal sectoral rates of profit, it is Sinha’s arguments that are self-contradicting. In particular, his main arguments are ultimately based on the idea according to which the average rate of profit of a given economic system is, and at the same time is not, independent from prices.

Suggested Citation

  • Daria Pignalosa & Paolo Trabucchi, 2022. "On the “Logical Necessity” of a Uniform Rate of Profit in Sraffa’s Production of Commodities by Means of Commodities," STOREPapers 2_2022, Associazione Italiana per la Storia dell'Economia Politica - StorEP.
    • Handle: RePEc:hpo:wpaper:2_2022
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    References listed on IDEAS

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    1. Matthew Smith, 2020. "Essays on Theories of Value in the Classical Tradition," Contributions to Political Economy, Cambridge Political Economy Society, vol. 39(1), pages 99-103.
    2. Michel-Stéphane Dupertuis & Ajit Sinha, 2009. "A Sraffian critique of the classical notion of centre of gravitation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(6), pages 1065-1087, November.
    3. Ajit Sinha, 2014. "A New Perspective on Sraffa," Palgrave Macmillan Books, in: Riccardo Bellofiore & Scott Carter (ed.), Towards a New Understanding of Sraffa, chapter 5, pages 81-93, Palgrave Macmillan.
    4. Ajit Sinha, 2012. "Listen to Sraffa's silences: a new interpretation of Sraffa's Production of Commodities," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 36(6), pages 1323-1339.
    5. Ajit Sinha, 2016. "A Revolution in Economic Theory," Springer Books, Springer, number 978-3-319-30616-2, December.
    6. Enrico Sergio Levrero, 2020. "On Sraffa’s Prices: A Rejoinder to Sinha," Review of Political Economy, Taylor & Francis Journals, vol. 32(3), pages 450-458, July.
    7. Ajit Sinha, 2007. "Sraffa and the Assumption of Constant Returns to Scale: A Critique of Samuelson and Etula," Contributions to Political Economy, Cambridge Political Economy Society, vol. 26(1), pages 61-70.
    8. Heinz D. Kurz, 2012. "Don't treat too ill my Piero! Interpreting Sraffa's papers," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 36(6), pages 1535-1569.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory

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