ppstdint3 | R Documentation |

This function computes the uniform rate of profit, prices of production and labor values for a basic capital stock model using the Standard Interpretation. The model has uniform wage rates across industries and does not take into account unproductive labor for labor value calculations.

```
ppstdint3(A, l, b, Q, D, K, t, l_simple)
```

`A` |
input-output matrix (n x n). |

`l` |
vector of complex labor input (1 x n). |

`b` |
vector real wage bundle (n x 1). |

`Q` |
gross output vector (n x 1). |

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

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

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

`l_simple` |
vector of simple labor input (1 x n). |

A list with the following elements:

`meig` |
Maximum eigen value of N |

`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 |

`dprice` |
Direct price vector |

`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
# 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
ppstdint3(A = A,l = l,b = b,Q = Q,l_simple = l,D=D,K=K,t=t)
```

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