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Sraffian Indeterminacy in General Equilibrium Revisited

Author

Listed:
  • Naoki Yoshihara

    (Department of Economics, University of Massachusetts Amherst)

  • Se Ho Kwak

    (Department of Economics, University of Massachusetts Amherst)

Abstract
In contrast to Mandler’s (1999a; Theorem 6) impossibility result about the Sraffian indeterminacy of the steady-state equilibrium, we first show that any regular Sraffian steady-state equilibrium is indeterminate in terms of Sraffa (1960) under the simple overlapping generation economy. Moreover, we also check that this indeterminacy is generic. These results are obtained by explicitly defining a simple model of overlapping gener- ation economies with Leontief production techniques, in which we also explain the main source of the difference between our results and Mandler (1999a; section 6).

Suggested Citation

  • Naoki Yoshihara & Se Ho Kwak, 2019. "Sraffian Indeterminacy in General Equilibrium Revisited," UMASS Amherst Economics Working Papers 2019-04, University of Massachusetts Amherst, Department of Economics.
    • Handle: RePEc:ums:papers:2019-04
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    References listed on IDEAS

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    More about this item

    Keywords

    Sraffian indeterminacy;

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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