Modern Classical Economics and Reality

A Spectral Analysis of the Theory of Value and Distribution

  • Theodore Mariolis
  • Lefteris Tsoulfidis

Part of the Evolutionary Economics and Social Complexity Science book series (EESCS, volume 2)

Table of contents

  1. Front Matter
    Pages i-xi
  2. Theodore Mariolis, Lefteris Tsoulfidis
    Pages 1-14
  3. Theodore Mariolis, Lefteris Tsoulfidis
    Pages 15-66
  4. Theodore Mariolis, Lefteris Tsoulfidis
    Pages 67-128
  5. Theodore Mariolis, Lefteris Tsoulfidis
    Pages 129-149
  6. Theodore Mariolis, Lefteris Tsoulfidis
    Pages 151-214
  7. Theodore Mariolis, Lefteris Tsoulfidis
    Pages 215-236
  8. Back Matter
    Pages 237-242

About this book


This book presents an in-depth, novel, and mathematically rigorous treatment of the modern classical theory of value based on the spectral analysis of the price–profit–wage rate system. The classical theory is also subjected to empirical testing to show its logical consistency and explanatory content with respect to observed phenomena and key economic policy issues related to various multiplier processes. In this context, there is an examination of the trajectories of relative prices when the distributive variables change, both theoretically and empirically, using actual input–output data from a number of quite divers

e economies. It is suggested that the actual economies do not behave like the parable of a one-commodity world of the traditional neoclassical theory, which theorizes the relative scarcities of “goods and production factors” as the fundamental determinants of relative prices and their movement. By contrast, the results of the empirical analysis are fully consistent with the modern classical theory, which makes the intersectoral structure of production and the way in which net output is distributed amongst its claimants the fundamental determinants of price magnitudes. At the same time, however, these results indicate that only a few vertically integrated industries (“industry core” or “hyper-basic industries”) are enough to shape the behaviour of the entire economy in the case of a disturbance. This fact is reduced to the skew distribution of the eigenvalues of the matrices of vertically integrated technical coefficients and reveals that, across countries and over time, the effective dimensions of actual economies are surprisingly low.


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Capital Theory Input-Output Analysis Modern Classical Theory Norm Bounds and Approximations for Price Magnitudes Spectral Analysis

Authors and affiliations

  • Theodore Mariolis
    • 1
  • Lefteris Tsoulfidis
    • 2
  1. 1.Department of Public AdministrationPanteion University of Social and Political SciencesAthensGreece
  2. 2.Department of EconomicsUniversity of Macedonia ThessalonikiGreece

Bibliographic information

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