Paper announcement

P8475423 at vmsuser.acsu.unsw.EDU.AU P8475423 at vmsuser.acsu.unsw.EDU.AU
Mon Sep 18 07:08:08 MDT 1995

I have just posted the paper on Steedman's 1992 "Sraffian"
critique of Kaleckian mark-up pricing theories that I
mentioned in a previous post to the
archives. The abstract follows; comments welcome.

Steve Keen

The central propositions in Steedmans 1992 paper "Questions for
Kaleckians" were (a) that the input-output aspects of production
must be taken account of in any account of price setting under
capitalism; and (b) that one consequence of this is that the
constraints which govern a mathematical representation of
input-output analysis--matrix algebra--therefore govern the values
that can be taken by the key parameters of the system of

This paper argues that the first proposition above is, with
reservations, correct--and, therefore, that some aspects of
"normal" Kaleckian analysis were rightly criticised--but that the
second is fallacious, since linear algebra is not an appropriate
mathematical tool for the representation of the input-output
nature of production. One suitable methodology is discrete-time
dynamics, and the application of this to Steedmans analysis and
example shows (a) that his critique of Kaleckian mark-up pricing
is largely misplaced, and (b) that his preferred methodology of
linear algebra is inapplicable to capitalism.

This is because, while it is true to say that "Kaleckian mark-up
pricing and distribution theory cannot be done properly if
inter-industry relationships are ignored" (Steedman 1992, p. 145),
the proper introduction of these issues results in a dynamic,
non-equilibrium analysis where, as Sawyer correctly muses,  "many
of the questions which [Steedman] raises would re-emerge (probably
in a more complex form)" (1992, p. 163).

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