clptheory (version 0.1.0)

ppstdint1: Circulating capital model 1 using the Standard Interpretation.

Description

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

Usage

ppstdint1(A, l, b, Q, l_simple)

Value

A list with the following elements:

meig

Maximum eigen value of M

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

mnonneg

Is M Nonnegative? (1=Y,0=N)

mirred

Is M Irreducible? (1=Y,0=N)

Arguments

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).

l_simple

vector of simple labor input (1 x n).

References

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/

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
)
# 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
# Compute prices of production
ppstdint1(A = A,l = l,b = b,Q = Q,l_simple = l)