Sraffa,interdependence and demand: the Gramscian influence

The influence of Sraffa' early commitments to Gramscian Marxism on his subsequent economic analysis have been little investigated by Sraffa scholars. The discussion here argues for a philosophical connection. Specifically, it is argued that organicist ideas found their way into Sraffa's thinking about interdependence in his 1926 critique of Marshall, in his reported critique of Wittgenstein's early philosophy, and in his 1960 Production of commodities. In each instance, atomist views were challenged in an understanding of agent or sectoral interdependence that made use a single criterion for agent or sectoral autonomy: that such autonomy depends upon the fulfilment of identify conditions for the individuation of autonomous agents or sectors. It is suggested that Sraffa's thinking in this regard ses the attempted fulfilment of these conditions in neoclassical theory as self-contradictory, thus allowing the characterization of his thinking as a form of impossibility logic. This impossibility logic is contrasted to that of Arrow, in order to advance general propositions about Sraffa's understanding of demand.     

Method and analysis in Piero Sraffa's 1925 critique of Marshallian economics

This paper provides an analysis of the logical structure and analytical content of Piero Sraffa's 1925 Italian paper, ‘Sulle relazioni fra costo e quantità prodotta’. It shows that Sraffa's criticism of the supply side of Marshall's theory of value in a competitive partial equilibrium model involves analytical and methodological issues. Endorsing an agressive methodology Sraffa logically reconstructs Marshall's model on variable returns to determine its empirical domain. He demonstrates that the latter encompasses only the empirically irrelevant cases of specific factor industries and specific external economies industries and that it cannot be generalized to non-specific factor industries and to non-specific external economies industries.     

On the importance of institutions and forms of organisation in Piero Sraffa's economics: the case of business cycles,money, and economic policy

Abstract

This paper is based on an investigation of the Sraffa Archives and tries to characterise Piero Sraffa's approach to business cycles and economic policy. It includes two parts. The first part of the paper shows the importance of economic institutions and social conventions in Sraffa's contribution to economics and their relation with social conflicts. The second part of the paper shows how this importance permits to understand better business cycles and economic policy but also indirectly contributes to a re-interpretation of Sraffa's contribution to economics.     

Long-period Positions and Economic Change. A rejoinder

Roncaglia and Nell have criticised the interpretation of Sraffa's normal prices as centres of gravitation for actual prices. Roncaglia mainly focuses on the interpretation of the notion of gravitation in Smith and on the meaning of the ‘given outputs’ in Sraffa. Nell attempts to confine the relevance of Sraffa's theory to specific historical circumstances and to find a role for Sraffa's prices in his version of post-Keynesian price theory. This rejoinder criticises the case made by both Roncaglia and Nell, and defends Sraffa's centre of gravitation view.     

Knowledge,coordination and the firm: Historical perspectives

Abstract

This paper illustrates the problems and processes of developing economic knowledge by a selective historical treatment of ideas about the firm. Coase thought it necessary to explain firms as organizations, but not as distinctive productive units; neither did he explain why markets exist. Chamberlin's attempt to introduce product differentiation and selling costs is compared with Allyn Young's process theory and Marshall's treatment of the firm, and inter-firm relations, as means of organizing the growth of knowledge. The firm is a decision-making system in a context of Knightian uncertainty, and Simon's concept of quasi-decomposability applies to human brains and human organizations.     

Krishna Bharadwaj's “Return to Classical Theory”: an attempt towards an archaeological reconstruction

Abstract

In the wake of Sraffa's ‘return to classical theory’, Krishna Bharadwaj undertook a critical reassessment of Marshall's claim to continuity with classical theory in general and Ricardo's ‘intensive margin’ in particular. Her analysis is based on an analytical separation between two distinct ways of economic reasoning: the ‘surplus based’ and the ‘demand and supply based’ theories. Calling it an ‘archaeological reconstruction’ of the history of economic theories, I will examine how such an interpretation of theoretical shifts clarifies both the presuppositions behind analysing at the ‘margin’, and hence its radical departure from the conceptual content of the classical theory.     

Whatever happened to Marshall's industrial economics?

Industry and Trade and the works on industrial economics by the Cambridge school – Chapman, Macgregor, Robertson, Lavington, A. Robinson and Florence – are usually neglected as if they were devoid of theoretical relevance. By contrast, the author argues that Marshall's evolutionary model, centred on the continuous interplay between innovation and standardization, inspired original research on localization, business size, coordination costs and industrial combinations. The paper also suggests that Marshallian ideas on the growth of firms and the structure of industrial organization are coming back in contemporary evolutionary theories of the firm.     

The wages‐and‐profits fund: Classical remnants in Marshall's early theory of distribution

Abstract

This paper traces the development of Marshall's theory of wages from the late 1860s to the publication of the first edition of the Principles of Economics (1890). Section one attempts to unravel Marshall's recollections of early intellectual influences, many of which were often distorted or wrong. Specifically, J. S. Mill's, Fleeming Jenkin's and J. H. von Thünen's influence on Marshall's early theory of distribution is explored in this context. In section two, analyses of Marshall's theory of wages in Economics of Industry (1879) and in other published writings is presented. This section draws attention to the similarity between Marshall's treatment of wages and the classical wage fund doctrine. In the final section, we re‐examine Marshall's defence of his theory of value and distribution in the Economics of Industry in the face of criticism of it by American economists S. M. MacVane and J. L. Laughlin in the Quarterly Journal of Economics.     

Gramsci,Sraffa, Wittgenstein: philosophical linkages

The paper assumes that since Gramsci influenced Sraffa and SraffA influenced Wittgenstein it may be possible to delineate a set of philosophical ideas which they shared in some degree. Gramsci's ideas are first reviewed on terms of his concept of hegemony, concept of caesarism and philosophy of praxis. On this basis three philosophical themes are identified in his thinking: the conept of emergence; catastrophic equilibrium; and the idea of a concrete universal. The thinking of Sraffa (both earlier and later) and the thinking of Wittgenstein (later) are then interpreted in terms of these same three themes. These links neither exhaust their philosophical thinking nor necessarily constitute the only links among the three. But these ideas provide one way of exploring connections among the three. The paper closes with brief remarks concerning two opposed philosophical traditions in modern European intellectual history at the turn of the century — one associated with thinking in Britain and one associated with continental thinking — meant to suggest the distinctiveness of a line of thinking running through Gramsci, Sraffa and Wittgenstein.     

Sraffa on Fixed Capital,Money and the Phases of Capitalism

In this paper I address some elements in Piero Sraffa's thinking that are connected to his conceptualization of the phases of capitalism. Sraffa describes various stages of capitalism using similar categories to the ones employed in the model of the economy provided in Production of Commodities. This is done by distinguishing the role of population, land and (circulating, intermediate and fixed) capital in each stage. Sraffa changed his conceptualization of fixed capital over the years, until he reached its final formulation. The conceptualizations of fixed capital that Sraffa discusses, together with his remarks on money which are made through an analogy with circulating and fixed capital, provide some elements that shed light on Sraffa's view of the dynamics of capitalism.     

Frank Knight and pragmatism∗

Abstract

One of many controversies surrounding the work of Frank Knight involves the question of whether, or to what degree, his ideas were consistent with those of American pragmatism. Substantive textual evidence can be found to support almost any simple answer to the question. This paper argues that while Knight was quite (often aggressively) opposed to a particular set of pragmatic ideas alive in the scholarly and social debates of his day, this fact says more about Knight's historical context than it does about the broader relationship between his philosophical position and pragmatism. Knight was opposed to the social control pragmatism of his day, but at the same time his general philosophical position has much in common with the features of the pragmatic tradition that are most emphasized in the recent philosophical literature.     

Sraffa and von Neumann

This paper discusses the relationship between Piero Sraffa's 1960 book and John von Neumann's 1937 paper on economic growth in the light of some of the material contained in Sraffa's unpublished papers and correspondence. It is argued that the two contributions share a similar outlook and exhibit conceptual parallels; in fact, they can both be said to belong to the 'classical' approach to the theory of value and distribution. The latter is characterized, among other things, by an asymmetric treatment of the distributive variables, the rate of return on capital and the real wage rate. Sraffa's papers show that when he came across the von Neumann model in the mid-1940s his own analysis was already quite advanced, including his analysis of joint production. The paper also contains an exchange of letters between John Richard Hicks and Sraffa on some of the issues dealt with in the latter's book.     

Alfred Marshall's use of Adam Smith: Coming to grips with an aspect of Alfred Marshall's citation practice

Abstract

This paper outlines Marshall's use of Smith's writings in his own published work as an aspect of Marshall's citation practice and to demonstrate Marshall's great admiration for Smith as economist. Section 2 reviews the Smith citations in Marshall's Principles of Economics', section 3 those in Marshall's other published work. The conclusion notes that this citation practice matches Marshall's great admiration Smith the economist, because of Smith's great ability to blend fact and theory, for drawing measured conclusions and, above all, for constructing useful arguments in a field of imprecise knowledge.     

The industry supply curve: Two different traditions

Abstract

The present paper seeks to provide some new insights into the precise nature and the analytical foundations (or lack of them) of the familiar industry supply curve. We reconsider some fundamental phases of its historical evolution. Two different traditions are distinguished: one consists of the formalisations of Marshall's theory proposed by Barone and, later, by Pigou, Viner, Harrod and Robinson; the other consists of the models of Hicks and Allen, on the basis of ideas and criticism put forward by other London School of Economics scholars, like Kaldor and Robbins, in the mid-1930s. It is argued that the second tradition did not really remedy the weak aspects of the Marshallian theory of supply.     

Sraffa,Myrdal, and the 1961 Söderström Gold Medal

In this paper, we give an account of the awarding of the 1961 Söderström Gold Medal to Piero Sraffa by the Royal Swedish Academy of Sciences (Kungliga Vetenskapsakademien). We highlight the central role that Gunnar Myrdal played in the allocation of this prize to Sraffa and the amicable relationship between these two economists, as well as their views on Ricardian economics. In addition, we provide details of Sraffa's activities in Stockholm, including his attendance at the award ceremony. In our final remarks, we reflect on the significance of the 1961 Söderström Gold Medal for the history of economics as a field of study.     

Against the current: Sraffa's unpublished manuscripts and the history of economic thought *

The paper throws some new light on Sraffa's contribution, using material from his yet unpublished papers. Attention focuses on Sraffa's rediscovery of the distinct character of the classical theory of value and distribution and his refutation of the Marshallian interpretation that it is only a special case of demand and supply theory, his reformulation of the classical theory, and his criticism of the alternative neoclassical theory.     

Sraffa and the Marshallian tradition*

Abstract

The paper retraces some of the stages in Sraffa's thinking about the work of Marshall, by drawing on unpublished material in the Sraffa archive from 1923 to 1930. It argues that Sraffa transformed his dissent – which was based on ideological grounds – into a ‘quest for the fatal error’ to demolish the logical construction of Marshallian theory. Some of his attacks were successful (for example, the critique of the relation between costs and output); other attempts failed (the critique of the ‘normal rate of profit’ and the critique of the concept of marginal productivity) since Sraffa could not find enough textual evidence to support his position.     

An economics for development and peace: With a particular focus on the thought of Ernst F. Schumacher

Ernst F. Schumacher'sSmall is Beautiful seems thoroughly persuasive even at the turn of the century, as reckless material development is increasingly recognized as a threat to peace. This article describes how his thought was influenced by Mahatma Gandhi. Gandhi's and Schumacher's ways of thinking are considered as alternative development theorees, different from any of those stemming from laissez-faire economics or Marxism. The formulation and proliferation of Schumacher's ideas about intermediate technologies are traced in both Indian and global contexts, to evaluate their sufficiency as bases for development. Moreover, their implications for contemporary economics are discussed, with the assistance of Amartya K. Sen's concepts of “capability,” “sympathy” and “commitment,” which are in clear contrast to the conventional concept of “economic man.” Finally, it is concluded that Schumacher's alternative development theories and practices, as well as Sen's economics, may play important roles in development and peace studies in the 21st century.     

The friendship between Piero Sraffa and Antonio Gramsci in the years 1919-1927

This paper is part of a research on Piero Sraffa's biography and studies the relationship between Piero Sraffa and the Italian Communist leader and political theoretician Antonio Gramsci during the years 1919–1927. This period extends from the beginning of their friendship to the first year of Gramsci's imprisonment (he was arrested in November 1926), which was also the year of Sraffa's departure for England, where he settled as a lecturer at the University of Cambridge.     

Missing links in Marshall's early thoughts on education

Over the period 1867?-?73 Marshall integrated his thoughts on education reform with his work on psychology, and then economics. Around 1872, when the static method proved problematic with regard to long-term wage differentials, Marshall took his developing position concerning education and incorporated it into his emerging vision of political economy, the result being the germ of much of Book IV of the Principles. In addition, looking at Marshall's early study of psychology in conjunction with his writings on education provides further reason to doubt that Marshall ever embraced a wholly materialist philosophy.