- Title Pages
- List of Figures
- List of Tables
- Preface and Acknowledgments
- 7 The Theory of Real Competition
- 8 Debates on Perfect and Imperfect Competition
- 9 Competition and Inter-Industrial Relative Prices
- 10 Competition, Finance, and Interest Rates
- 11 International Competition and the Theory of Exchange Rates
- Appendix 2.1 Sources and Methods for Chapter 2
- Appendix 4.1 Production Flows and Stocks in National Accounts
- Appendix 4.2 Numerical Calculations for Figures 4.1–4.18
- Appendix 5.1 Citations of Key Points in Marx’s Theory of Money
- Appendix 5.2 Sources and Methods for Chapter 5
- Appendix 6.1 Algebra of Profit and Surplus Labor
- Appendix 6.2 The Rate of Profit as a Real Rate
- Appendix 6.3 Gross and Net Capital Stocks
- Appendix 6.4 Marx and Sraffa on Fixed Capital as a Joint Product
- Appendix 6.5 Measurement of the Capital Stock
- Appendix 6.6 Measurement of Capacity Utilization
- Appendix 6.7 Empirical Methods and Sources
- Appendix 7.1 Data Sources and Methods for Chapter 7
- Appendix 9.1 Matrix Algebra of Classical Price Theory
- Appendix 9.2 Sources and Methods for Chapter 9
- Appendix 10.1 Sources and Methods for Chapter 10
- Appendix 11.1 Data Sources and Methods for Chapter 11
- Appendix 12.1 Sources and Methods for Chapter 12
- Appendix 13.1 Stability of Multiplier Processes
- Appendix 14.1 Dynamics of the Classical and Goodwin Models
- Appendix 14.2 Data Sources, Methods, and Regressions
- Appendix 15.1 Sources and Methods for Chapter 15
- Appendix 16.1 Sources and Methods for Chapter 16
- Appendix 17.1 Sources and Methods for Chapter 17
- Note on Abbreviations
- References
- Author Index
- Subject Index
Competition and Inter-Industrial Relative Prices
Competition and Inter-Industrial Relative Prices
- Chapter:
- (p.380) 9 Competition and Inter-Industrial Relative Prices
- Source:
- Capitalism
- Author(s):
Anwar Shaikh
- Publisher:
- Oxford University Press
The subject of this chapter is the classical theory of relative prices and supporting evidence. It is shown that production price‒labor time deviations do not arise per se from competition, private property in the means of production, equalization of labor incomes, capitalist relations, positive profits, or even from the equalization of profit rates: they arise solely from differences among vertically integrated (direct and indirect) capital‒labor ratios whose dispersions tend to be small. Various distance measures are considered, and empirical evidence is presented to the effect that the distances between market prices, direct prices (prices proportional to integrated labor times), and prices of production are in the range of 13% to 15%. Temporal changes in normalized market, production, and direct prices are shown to be similarly close. Indeed, at an empirical level even individual Sraffa standard prices are essentially linear. The overall results provide strong support for the classical theory of relative prices.
Keywords: relative prices, labor time, capital–labor ratios, Sraffa, vertical integration
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- Title Pages
- List of Figures
- List of Tables
- Preface and Acknowledgments
- 7 The Theory of Real Competition
- 8 Debates on Perfect and Imperfect Competition
- 9 Competition and Inter-Industrial Relative Prices
- 10 Competition, Finance, and Interest Rates
- 11 International Competition and the Theory of Exchange Rates
- Appendix 2.1 Sources and Methods for Chapter 2
- Appendix 4.1 Production Flows and Stocks in National Accounts
- Appendix 4.2 Numerical Calculations for Figures 4.1–4.18
- Appendix 5.1 Citations of Key Points in Marx’s Theory of Money
- Appendix 5.2 Sources and Methods for Chapter 5
- Appendix 6.1 Algebra of Profit and Surplus Labor
- Appendix 6.2 The Rate of Profit as a Real Rate
- Appendix 6.3 Gross and Net Capital Stocks
- Appendix 6.4 Marx and Sraffa on Fixed Capital as a Joint Product
- Appendix 6.5 Measurement of the Capital Stock
- Appendix 6.6 Measurement of Capacity Utilization
- Appendix 6.7 Empirical Methods and Sources
- Appendix 7.1 Data Sources and Methods for Chapter 7
- Appendix 9.1 Matrix Algebra of Classical Price Theory
- Appendix 9.2 Sources and Methods for Chapter 9
- Appendix 10.1 Sources and Methods for Chapter 10
- Appendix 11.1 Data Sources and Methods for Chapter 11
- Appendix 12.1 Sources and Methods for Chapter 12
- Appendix 13.1 Stability of Multiplier Processes
- Appendix 14.1 Dynamics of the Classical and Goodwin Models
- Appendix 14.2 Data Sources, Methods, and Regressions
- Appendix 15.1 Sources and Methods for Chapter 15
- Appendix 16.1 Sources and Methods for Chapter 16
- Appendix 17.1 Sources and Methods for Chapter 17
- Note on Abbreviations
- References
- Author Index
- Subject Index
