1,720,993 research outputs found
Surplus approach to value and distribution and structural economic dynamics: interpretation and uses of Sraffa's analysis
No full textThis essay presents and discusses the interpretation and uses of Sraffa's system which can be found in two major streams of analysis developed in the wake of Sraffa (1960): the Surplus Approach to Value and Distribution (SAVD) and the approach of Structural Economic Dynamics (SED). As to the former, we go through the separation of the analysis in two distinct logical stages, which leads to enucleate the 'core' of surplus theories: the relations between distribution and relative prices. As to the latter, the emphasis is on the analytical notion of growing subsystems, where the configuration of natural prices is logically implied by the conditions necessary for reproduction and growth. In both approaches, the relation between physical surplus product, profits and wages is explored, and the role played by the labour theory of value is touched upon. A further emphasis is put on the separate determination of relative prices and physical quantities common to both approaches
Changes in the productivity of labour and vertically integrated sectors — an empirical study for Italy
Full text linkThe object of this paper is to derive measures for the changes in physical labour productivity and to apply them to the case of Italy during the 1995-2000 period. Firstly, section 1, introduces the historical development of selected literature on labour productivity measurement using the notion of vertically integrated sectors and derives measures computable from actual data. In the second place,section 2 describes the series utilised and presents the computation of the previously derived measures. Thirdly, section 3 presents the main results, introducing a typology according to which characterize the determinants behind changes in physical labour productivity, and draws implications for the particular case under study. Some final comments are given in section 4
Kirchhoffian indices for weighted digraphs
Full text linkThe resistance indices, namely the Kirchhoff index and its generalisations, have undergone intense critical scrutiny in recent years. Based on random walks, we derive three Kirchhoffian indices for strongly connected and weighted digraphs. These indices are expressed in terms of (i) hitting times and (ii) the trace and eigenvalues of suitable matrices associated to the graph, namely the asymmetric Laplacian, the diagonally scaled Laplacian and their Moore–Penrose inverses. The appropriateness of the generalised Kirchhoff index as a measure of network robustness is discussed, providing an alternative interpretation which is supported by an empirical application to the World Trade Network
Pasinetti's 'Structural Change and Economic Growth': A Conceptual Excursus
Full text linkA clear and organic exposition of Pasinetti's theoretical framework of Structural Change and Economic Growth has been prevented by misunderstandings and ambiguities concerning basic categories and terminology. The pre-institutional character of the approach, the nature of its equilibrium paths and the significance - and normative character - of the 'natural' economic system are some of the most controversial issues. The aim of this article is to present a conceptual excursus of the model to establish a solid foundation for fruitful discussions to be held with other Classical approaches
Nearshoring and farsharing in Europe within the global economy: regional trends, structural components and sectoral patterns
No full textThis paper documents recent trends in the geographical distribution of value added across Global Value Chains (GVCs). By combining the industry (i.e., source) and value chain (i.e., destination) analytical perspectives, we find two concurrent processes setting Europe’s participation to GVCs apart from other two macro-regions, Asia-Pacific and the Americas. European value chains have recently increased the share of value added they import from within Europe—which amounts to nearshoring—while European country-industries have, from a long-period perspective, increased the share of value added they provide to extra-European value chains—which we refer to as farsharing. We study these trends by decomposing macro-regional dynamics into structural components, zooming in on Europe to highlight country- and sector-level patterns. Crucially, if global final demand decelerates, the positive intra-European spillovers due to regional backward linkages (nearshoring-induced effects) might not become as effective as they could potentially be, given that activating European production increasingly requires extra-European final demand (the farsharing constraint)
Disequilibrium and Instability (Not Equilibrium) as the Normal State of the Industrial Economies: A Methodological Standpoint on Structural Economic Dynamics
Full text linkEquilibrium is an organising principle of economic thinking subject to incompatible interpretations. The idea of a Keynesian equilibrium as a position of rest with involuntary unemployment contrasts with Pasinetti's notion of an equilibrium situation, that is, an unstable position with full employment. In the former, an equilibrium state cannot be separated from the mechanisms that may (or may not) lead to it, whereas in the latter, the explicit separation between both layers is crucial.
This chapter explores how Pasinetti's methodological standpoint, formulation of the principle of effective demand and conceptualisation of equilibrium, cumulatively build up into a scheme of structural dynamics. It is argued that compositional changes in the structure of demand and the uneven pace of productivity increases render equilibrium situations impossible to maintain through time, especially as regards (full) employment. Therefore, rather than seeking explanations as to why the economy does not return to its equilibrium path, it proves fruitful to specify and empirically implement computable norms to quantify how far (or close) actual economies are from them, providing a compass for policy
Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU
Full text linkClusters and subsystems are two frequently used tools in inter-industry analysis, the former clarifying structure while the latter summarising circularity. Since industry blocks with crucial direct linkages will probably have strong indirect ties as well, localised intra-cluster feedback effects may play a prominent role in explaining total labour requirements. In this paper, we first quantify the labour redistribution taking place between industries and subsystems within and between clusters. Next, we extend the standard notion of vertically integrated labour to account for intra- and extra-cluster circularity, quantifying the extent to which overall productivity growth in every subsystem originates from intra-cluster industries. Both issues are illustrated for the consolidated European Union (EU27) economy between 2000 and 2007
Productivity Accounting in Vertically (Hyper-)integrated Terms: Bridging the Gap between Theory and Empirics
Full text linkThe present paper is a methodological contribution introducing a disaggregated physical productivity accounting framework in vertically (hyper-)integrated terms, establishing a direct correspondence between Supply-Use Tables and Pasinetti’s (1973, 1988) theoretical magnitudes. As an empirical application, we computed productivity indicators and indexes of direction of technical change at the subsystem level for the case of Italy during 1999-2007. Our findings suggest that: (a) only 60 per cent of productivity growth accrued to real wages, (b) the degree of mechanization increased, (c) the most dynamic subsystems correspond to consolidated sectors, and (d) technical change has almost always been capital intensity increasing
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