ppnewint7 | R Documentation |

This function computes the uniform rate of profit, prices of production and labor values for a capital stock model using the New Interpretation. The model has uniform wage rates across industries and takes account of unproductive labor for labor value calculations.

```
ppnewint7(A, Ap, l, lp, w, v, Q, Qp, D, Dp, K, t, 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). |

`D` |
depreciation matrix (n x n). |

`Dp` |
depreciation matrix for the subset of productive industries (m x m). |

`K` |
capital stock coefficient matrix (n x n). |

`t` |
turnover times matrix (n x n diagonal). |

`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 |

`Nnonneg` |
Is N Nonnegative? (1=Y,0=N) |

`Nirred` |
Is N 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
# Vector of nominal wage rates
w <- matrix(data=c(wavg-0.5,wavg,wavg+0.5),nrow=1)
# Value of labor power
v <- 3/5
# Depreciation matrix
D <- matrix(data = c(0,0,0,0.00568,0.0267,0.0028,0.00265,0.0147,0.00246),
nrow=3, ncol=3, byrow = TRUE
)
# Capital stock coefficient matrix
K <- matrix(
data = c(0,0,0,0.120,0.791,0.096,0.037,0.251,0.043),
nrow=3, ncol=3, byrow = TRUE
)
# Diagonal turnover matrix
t <- diag(c(0.317, 0.099, 0.187))
# Compute prices of production
ppnewint7(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],D=D,Dp=D[1:2,1:2],K=K,t=t)
```

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