Classical and Neoclassical Approaches
In striking contrast to the models developed by the modern neoclassical writers are two models of general equilibrium developed in the 1930s, one by von Neumann, the other by Sraffa.1 Both are distinctly in the classical vein, but neither model involves recourse to marginal products, abstinence, rewards of waiting or the perfect substitutability of production functions that were later to be added by the modern neoclassicists.
KeywordsReal Wage Capital Good Standard System Fixed Capital Production Equation
Unable to display preview. Download preview PDF.
- 1.P. Sraffa, Production of Commodities by Means of Commodities: Prelude to a Critique of Economic Theory (Cambridge, England: Cambridge University Press, 1960 ).Google Scholar
- 1.P. Samuelson, ‘Parable and Realism in Capital Theory: The Surrogate Production Function’, Review of Economic Studies, xxrx (June 1962).Google Scholar