Zero Measure Sraffian Economies: New Insights from Actual Input–Output Tables

Abstract

New theoretical and empirical evidence reveals that the actual input–output table economies of single production, which are usually studied in the value–capital theory literature, are almost similar to non-diagonalizable, triangular and both uncontrollable and unobservable (in the sense of Kalman) economies producing only one basic commodity and non-self-reproducing non-basics (in the sense of Sraffa), the immense majority of which are pure consumption commodities. Since (i) these basic commodities are the corresponding Sraffian Standard commodities of the original economies; (ii) the resulting empirical probabilities of non-monotonic price–profit rate curves and re-switching of techniques are by no means negligible; and (iii) systems and matrices are almost always completely controllable/observable and diagonalizable, respectively, it follows that the said actual input–output table economies are not only Sraffian but also of almost zero measure.

Matrix multipliers, demand composition and income distribution: Post‐Keynesian–Sraffian theory and evidence from the world's ten largest economies

“…In point of fact, the average incremental wage shares are all ‘nearly linear’ functions of the profit rate (in the sense that the CCs between $$\overline{IWS}$$ and $$r$$ tend to be above 99%), while the profits, $$r{\boldsymbol{\uppi }}^{\mathrm{T}}(r){\mathbf{H}}_{\mathrm{d}}{\mathbf{e}}_{i}$$, of the vertically integrated industries are all strictly increasing and, more often than not, nearly linear functions of the profit rate. It appears that the said specific shape features of the curves (no more than one extreme point, near‐linearity, monotonicity of profits) are related to the following stylised fact: The actual NIOT economies are almost similar (via the Schur triangulation) to non‐diagonalisable, triangular economies producing only one basic commodity (which is the Sraffa Standard commodity of the corresponding original economy) and non‐self‐reproducing non‐basics, the immense majority of which are pure consumption commodities (see Mariolis & Veltsistas, 2022). However, this conjecture could be examined in future research.…”

Rural-Urban Linkages: Regional Financial Business Services’ Integration into Chilean Agri-Food Value Chains

“…Consequently, it can influence the production process beyond the trade in final goods, thus facilitating the development of linkages across the domestic (regional) and global supply chains. Additionally, this justifies the adoption of the input-output approach, as it enables the analysis of the economic structure among regions and industries [77,78].…”