Pasinett's Vertically Hyper-Integrated Sectors and Natural Prices
Hyper-vertically integrated sectors and their natural prices, as presented by L. L. Pasinetti (1988), are reexamined in a slightly different framework and with the help of a very simple three-industry model. It is shown that, while Pasinetti's analysis takes into account basic commodities and interdependence, it short-circuits them. It is then asked whether such an approach is required to analyze growing subsystems. Copyright 1997 by Oxford University Press.
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