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Revisiting fixed capital models in the Sraffa framework

  • Biao HuangEmail author
Original Paper
  • 7 Downloads

Abstract

Von Neumann (Review of Economics Studies 13(1):1–9, 1945) and Sraffa (Production of commodities by means of commodities. Prelude to a critique of economic theory. Cambridge University Press, Cambridge, 1960) revived the classical ideas of treating fixed capital as a special case of joint production. Sraffa’s model with a single machine that has constant efficiency has been widely generalised. Among such generalisations, Salvadori’s contribution (Value, distribution and capital. Essays in honour of Pierangelo Garegnani, Routledge, London, pp 270–285, 1999) not only re-ignited research interest in the field, but also reshaped scholastic understanding of the importance of machines’ efficiencies with regard to fixed capital models. Such novel insights make it necessary to revisit the development of fixed capital models in the Sraffa framework. In this paper these models are surveyed with a focus on the properties of the cost-minimising technique in each model.

Keywords

Fixed capital Sraffa Cost-minimising technique Transferable machines Jointly utilised machines 

JEL Classification

B51 C60 D24 

Notes

Acknowledgements

I would like to express my sincere gratitude to Professor Neri Salvadori for his inspiration, guidance and invaluable comments during the writing of this paper. The comments from Professor Fabio Petri and an anonymous referee are also gratefully acknowledged. The usual disclaimer applies. This paper is a project funded by China Postdoctoral Science Foundation, no. 2018M631654.

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.School of EconomicsRenmin University of ChinaBeijingPeople’s Republic of China

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