On the Ricardian invariable measure of value in general convex economies

Kazuhiro Kurose, Naoki Yoshihara

Research output: Contribution to journalArticle

Abstract

This study examines the possibility of an invariable measure of value when price changes induced by income redistribution between profit and wages take place in general convex economies. While Ricardo searched for an invariable measure of value with respect to changes in both the factor income distribution and the technique, Sraffa constructed a standard commodity serving as a measure of the change in a factor income distribution alone by leaving aside the possibility of changes in the size and composition of output and means of production. This study allows for the possibility that a change in factor income distribution involves a change in technique, and proposes an extension of Sraffa's standard commodity. Then, we show that it serves as an invariable measure of value with respect to the income redistribution, even though it involves a change in technique. Finally, we examine whether the linear distributional relation is preserved.

Original languageEnglish
Pages (from-to)539-549
Number of pages11
JournalStructural Change and Economic Dynamics
Volume51
DOIs
Publication statusPublished - 2019 Dec

Keywords

  • General convex economies
  • Linear relation of factor income distribution
  • Ricardo's invariable measure of value
  • Sraffa's standard commodity

ASJC Scopus subject areas

  • Economics and Econometrics

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