Sraffa or An Alternative Economics
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1 Sraffa or An Alternative Economics
2 This page intentionally left blank
3 Sraffa or An Alternative Economics Edited by Guglielmo Chiodi and Leonardo Ditta
4 Selection and editorial matter Guglielmo Chiodi and Leonardo Ditta 2008 Individual chapters contributors 2008 Softcover reprint of the hardcover 1st edition All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act First published 2008 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y Companies and representatives throughout the world. PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin s Press, LLC and of Palgrave Macmillan Ltd. Macmillan is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN ISBN (ebook) DOI / This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress
5 Contents List of Tables, Figures and Diagrams Acknowledgements List of Contributors vii viii ix Introduction 1 Guglielmo Chiodi and Leonardo Ditta Part I Reactions 1 Book Reviews on Production of Commodities by Means of Commodities 23 Enrico Bellino Part II Economics 2 Sraffa s Prices 45 S. N. Afriat 3 Sraffa after Marx: An Open Issue 68 Riccardo Bellofiore 4 The Classical Surplus Approach and the Theory of the Welfare State and Public Pensions 93 Sergio Cesaratto 5 Sraffa 1926 and Sraffa 1960: An Attempt to Bridge the Gap 114 Sergio Nisticò 6 Savings, Investment and Capital in a System of General Intertemporal Equilibrium an Extended Comment on Garegnani with a Note on Parrinello 127 Bertram Schefold Commentary by Sergio Parrinello 7 Beyond Capitalism: Sraffa s Economic Theory 187 Guglielmo Chiodi 8 Notes on Early Development Economics Story and Its Relation to Sraffa s Contribution 199 Leonardo Ditta v
6 vi Contents Part III Philosophy 9 Sraffa: Notes on Moralizing, Money, and Economic Prudence 211 Peter Edwards 10 What Wittgenstein Owed to Sraffa 227 Brian McGuinness Part IV Mathematics 11 Some Mathematical Remarks on Sraffa s Chapter I 239 Paolo Maroscia 12 Some Observations on Sraffa and Mathematical Proofs With an Appendix on Sraffa s Convergence Algorithm 243 Marco Lippi Commentary by Neri Salvadori 13 On the Collaboration between Sraffa and Besicovitch: The Proof of Gradient 260 Heinz D. Kurz and Neri Salvadori 14 Sraffa s Economics in Non-Classical Mathematical Modes 275 Kumaraswamy Velupillai Index 295
7 List of Tables, Figures and Diagrams Figure 4.1 Direct and indirect income distribution in the classical approach 97 Table 6.1 The formulas which define the Garegnani-semiequilibrium GSE and the Clower-semiequilibrium CSE 135 Diagram 6.1 S I, r s, w as functions of ξ 150 Diagram 6.2 The relation between S I and r s 151 Diagram 6.3a Wage curves for methods 1 and 2 and their envelope 155 Diagram 6.3b The technology frontier (transformation curve) TF for the CSE 156 Diagram 6.3c The technology frontier (the transformation curve) TF for the GSE, E full equilibrium 159 Diagram 6.3d The I S schedules of the GSE in function of the rate of interest 160 Diagram 6.4 The full employment level of the consumption of good c i 1 is indicated by c 1 i 163 Diagram 6.5 Two techniques with reswitching 165 Diagram 6.6 Intertemporal Giffen effect; tg γ, tg γ : slopes corresponding to interest rates 170 vii
8 Acknowledgements The financial support of the Bank of Italy and the Istituto Banco di Napoli Fondazione is gratefully acknowledged. viii
9 List of Contributors Sidney N. Afriat is in the Dipartimento di Economia Politica, Università di Siena, Italy. Enrico Bellino is at the Università Cattolica del Sacro Cuore, Italy. Riccardo Bellofiore is in the Dipartimento di Scienze Economiche Hyman P. Minsky, University of Bergamo, Italy. Sergio Cesaratto is at the Università di Siena, Italy. Guglielmo Chiodi is at the University of Rome Sapienza, Italy. Leonardo Ditta is at the University of Perugia, Italy. Peter Edwards is at Kanazawa University, Japan. Heinz D. Kurz is at the University of Graz, Austria. Marco Lippi is in the Dipartimento di Scienze Economiche at the Università La Sapienza, Italy. Paolo Maroscia is in the Dipartimento di Metodi e Modelli Matematici at the Università di Roma La Sapienza, Italy. Brian McGuinness is at the University of Siena, Italy. Sergio Nisticò is at the Università di Cassino, Italy. Sergio Parrinello is in the Dipartimento di Economia Pubblica at the Università degli studi La Sapienza, Roma, Italy. Neri Salvadori is at the University of Pisa, Italy. Bertram Schefold is at Johann Wolfgang Goethe-Universitat, Germany. Kumaraswamy Velupillai is in the Department of Economics at the National University of Ireland, Galway, Ireland, and at Girton College, Cambridge, UK. ix
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