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Do Supply Curves Slope Up? The Empirical Relevance of the Sraffian Critique of Neoclassical Production Economics

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  • Ozanne, Adam
Abstract
The Sraffian critique of neoclassical economics has tended to concentrate on the input rather than the output side of production processes--in particular, criticism of neoclassical theory. When it has addressed supply questions, it has been concerned more with individual commodities than aggregate supply. Furthermore, Sraffian economists have been criticized for not investigating the relevance of their hypothesis empirically. This paper extends the Sraffian critique of Marshallian partial analysis to cover aggregate supply and reports the results of a simulation exercise based on an econometric model of U.K. agriculture that finds evidence of perverse supply response at the aggregate level. (c) 1996 Academic Press Limited Copyright 1996 by Oxford University Press.

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  • Ozanne, Adam, 1996. "Do Supply Curves Slope Up? The Empirical Relevance of the Sraffian Critique of Neoclassical Production Economics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 20(6), pages 749-762, November.
    • Handle: RePEc:oup:cambje:v:20:y:1996:i:6:p:749-62
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    Cited by:

    1. W D A Bryant, 2009. "General Equilibrium:Theory and Evidence," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 6875, August.
    2. Gwilym Pryce, 1999. "Construction Elasticities and Land Availability: A Two-stage Least-squares Model of Housing Supply Using the Variable Elasticity Approach," Urban Studies, Urban Studies Journal Limited, vol. 36(13), pages 2283-2304, December.
    3. Zaman, Asad & Saglam, Ismail, 2010. "The conflict between general equilibrium and the Marshallian cross," MPRA Paper 33256, University Library of Munich, Germany.
    4. Rodolfo Signorino, 2000. "Method and analysis in Piero Sraffa's 1925 critique of Marshallian economics," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 7(4), pages 569-594.
    5. Pryce, Gwilym & White, Michael, 1999. "Contiguous land use as a driver for land allocation," ERSA conference papers ersa99pa041, European Regional Science Association.
    6. Paul Oslington, 2012. "General Equilibrium: Theory and Evidence," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 446-448, September.

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