Abstract
In a note recently published in this Journal, Eygelshoven and Kuipers (1981) criticize one particular assertion which appears in my mathematical formulation of the Ricardian system (Pasinetti, 1960, p. 84). The assertion is that, in a Ricardian model with uniform capital intensity all over the economy, value is not affected by changes in income distribution. Eygelshoven and Kuipers admit that, in what I have called Ricardo's market equilibrium, relative prices are proportional to relative quantities of labour, independently of income distribution. However, in what I have called Ricardo's natural and stationary equilibria (to use for simplicity the two-commodity version of my formulation (see Pasinetti, 1960)) prices are given by:
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call