By John E. Woods

ISBN-10: 0333436296

ISBN-13: 9780333436295

ISBN-10: 1349204838

ISBN-13: 9781349204830

It is a bankruptcy by way of bankruptcy rationalization of the paintings which served as a foundation for a critique of the marginal idea of price and distribution - construction of Commodities via Commodities through the economist, Sraffa.

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**Additional resources for The Production of Commodities: An Introduction to Sraffa**

**Sample text**

20) This contradicts the definition of R. 6) which fails to be satisfied as r is increased from zero. e. 21b) e (s) = 0 has two roots Sl' S2' where Sl = 1/(1+ R). 5) when r = R. 24) is zero and that on the right-hand side is positive, it follows that m = O. 25b) which has a unique positive solution piPI by Result 4. 5) has solution for each value of r lying between 0 and R: (i) if 0 ::s r < R, m, PI and P2 are all positive; (ii) if r = R, m = 0, PI and P2 are both positive. The purpose of this extended discussion has been to establish that there is a range of feasible values of the rate of profit over which both prices are positive.

So, a process could be described as productive at a given price system if it produced a positive net value. 3 There are two reasons for rejecting this suggestion. First, as the price system will be seen to depend on technical coefficients, it is clear that such a definition is not primitive. The second reason can perhaps be best appreciated by comparing the following example with the third one above: 4. 9) Given}\ = 2, P2 = 3, the corresponding gross outputs are Xl = 40/3, X 2 = 52/3. It might have been thought that, by comparison with the first two, the third example was of an unproductive economy because of the second process.

21): Clearly, 51 > O. Consider the other root. 15). Having examined the case where 52 < 0, now suppose that 52 > O. 23) directs attention to r l which is the smallest positive value of = O. I now put aside the study of 52 and r 2 for the moment to investigate the properties of the other root. The first question to arise concerns the sign of r l . Though 51 > 0, it does not automatically follow that r l > 0; 51 > 0 implies that 1/(1 + l ) > 0, which is consistent with l < O. I am looking for l > 0, which is equivalent to 0' < 51 < 1.

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