ppsraffa1: Circulating capital model using the Sraffian method.

In clptheory: Compute Price of Production and Labor Values

Circulating capital model using the Sraffian method.

Description

This function computes the uniform rate of profit, prices of production and labor values for a basic circulating capital model using the Sraffian method.

Usage

ppsraffa1(A, Q, pshare, l_simple)

Arguments

A	input-output matrix (n x n).
Q	gross output vector (n x 1).
pshare	profit share (scalar)
l_simple	vector of simple labor input (1 x n).

Value

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)

Examples

# ------ 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
)
# Gross output vector
Q <- matrix(
data = c(26530, 18168, 73840),
ncol=1
)
# Direct labor input vector (simple)
l_simple <- l
# Profit share
pshare <- 1/3
# Compute prices of production
ppsraffa1(A = A,pshare=pshare,Q = Q,l_simple = l)

clptheory documentation built on March 18, 2026, 1:07 a.m.