ppnewint3 | R Documentation |
This function computes the uniform rate of profit, prices of production and labor values for a circulating capital model using the New Interpretation. The model has uniform wage rates across industries and takes account of unproductive labor for labor value calculations.
ppnewint3(A, Ap, l, lp, w, v, Q, Qp, lp_simple)
A |
input-output matrix (n x n). |
Ap |
input-output matrix for the subset of productive industries (m x m). |
l |
vector of complex labor input (1 x n). |
lp |
vector of complex labor input for the subset of productive industries (1 x m). |
w |
uniform nominal wage rate (scalar). |
v |
value of labor power (scalar). |
Q |
gross output vector (n x 1). |
Qp |
gross output vector for the subset of productive industries (m x 1). |
lp_simple |
vector of simple labor input for the subset of productive industries (1 x m). |
A list with the following elements:
meig |
Maximum eigen value of A |
urop |
Uniform rate of profit (as a fraction) |
mrop |
Maximum rate of profit (as a fraction) |
ppabs |
Price of production vector (absolute) |
pprel |
Price of production vector (relative) |
lvalues |
Labor values vector |
mevn |
Monetary expression of value using net output |
mevg |
Monetary expression of value using gross output |
Anonneg |
Is A Nonnegative? (1=Y,0=N) |
Airred |
Is A Irreducible? (1=Y,0=N) |
Basu, Deepankar and Moraitis, Athanasios, "Alternative Approaches to Labor Values andPrices of Production: Theory and Evidence" (2023). Economics Department Working Paper Series. 347. URL: https://scholarworks.umass.edu/econ_workingpaper/347/
# ------ Data
# Input-output matrix
A <- matrix(
data = c(0.265,0.968,0.00681,0.0121,0.391,0.0169,0.0408,0.808,0.165),
nrow=3, ncol=3, byrow = TRUE
)
# Direct labor input vector (complex)
l <- matrix(
data = c(0.193, 3.562, 0.616),
nrow=1
)
# Real wage bundle
b <- matrix(
data = c(0.0109, 0.0275, 0.296),
ncol=1
)
# Gross output vector
Q <- matrix(
data = c(26530, 18168, 73840),
ncol=1
)
# Direct labor input vector (simple)
l_simple <- l
# Market price vector
m <- matrix(data = c(4, 60, 7),nrow=1)
# Uniform nominal wage rate
wavg <- m%*%b
# Value of labor power
v <- 3/5
# Compute prices of production
ppnewint3(A=A,Ap=A[1:2,1:2],l=l,lp=l[1,1:2],w=wavg[1,1],v=v,Q=Q,Qp=Q[1:2,1],lp_simple=l[1,1:2])
Add the following code to your website.
For more information on customizing the embed code, read Embedding Snippets.