ppnewint8 | 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 allows differential wage rates across industries and takes account of unproductive labor for labor value calculations.
ppnewint8(A, Ap, l, lp, w, wp, 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 |
vector of nominal wage rates (1 x n). |
wp |
vector of nominal wage rates for the subset of productive industries (1 x m). |
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
ppnewint8(A=A,Ap=A[1:2,1:2],l=l,lp=l[1,1:2],w=w[1,],wp=w[1,1:2],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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