On the Productivity Criteria of Leontief Matrices and the Conceptual Validity of Labor Values

This paper generalizes some well-known productivity (nonnegative L-invertibility) criteria defined for nonnegative quadratic input-output coefficient matrices. The new economic criteria cover both the reducible and irreducible cases, treated separately until now, and are based on the absence of self-serving production and/or complete automation, which can be viewed as dual concepts. Detailed investigation of these concepts also reveals that their presence is incompatible with the idea of pure market commodity production. In particular, it is shown that the fundamental assumptions of the pure market economy and the indispensability of labor are sufficient to rigorously prove the existence, uniqueness, and strict positivity of labor values

Eigenvalue Models of the Marxian Value System

In this paper, Ernoe Zalai addresses problems related to the formal analysis and computational aspects of the Marxian labor value theory. Since the labor theory of value is customarily burdened with considerable ideological overtones, one of the aims of the paper is to disperse, through a formal analysis, some of the associated myths. Labor values constitute one possible set of accounting prices that could be used in international comparisons, in order to reduce the inconsistencies that arise from differences in price systems

Eigenvalues and Labor Values

This paper is an abstract of an academic thesis available only in Hungarian. The organization of the abstract follows that of the thesis, which is divided into four chapters. At the beginning of each chapter there is a short summary and then the main issues discussed in the chapter are condensed into a few points. Being an abstract, all the formal propositions are presented without proofs. References are added only in unavoidable cases

A Nonlinear Multisectoral Model for Hungary: General Equilibrium Versus Optimal Planning Approach

Recent years have witnessed a shift in nation-wide economic modeling techniques. Parallel to the use of traditional linear models has been the development of more sophisticated nonlinear models, under the name of applied (computable) general equilibrium models. Some of these models have been especially designed to capture the interrelationships of economic, demographic, and spatial processes. This paper investigates the possibilities and expected benefits of incorporating nonlinear multisectoral models of the computable general equilibrium type into the planning methodology of socialist countries. Linear multisectoral models have become more or less integrated into the complex process of planning in most of the socialist countries. Despite their fundamental conceptual differences the optimal planning models and the computable general equilibrium models exhibit close technical similarities, which make the transfer of modeling techniques feasible. For illustration a tentative nonlinear model is developed for Hungary which combines the concepts and techniques of the above two modeling approaches. The model differs considerably from its Western counterparts and can be viewed as a natural extension of the planning models used in Hungary. The model takes explicitly into account the interaction of real and value variables, emphasizes the foreign trade flows and incorporates demographic and spatial aspects as well

Multisectoral Macroeconomic Models and Optimum Tariffs

The treatment of foreign trade has a great influence on the results obtained from multisectoral macroeconomic models. This manifests itself clearly in the problem of overspecialized solutions, which arises in most of the models currently in use. This unwanted phenomenon is treated differently in the two main classes of models: programming models and general equilibrium models. The paper discusses the theoretical and methodological problems related to this issue using a special comparative framework, in terms both of the above two classes of applied models and in terms of laissez-faire equilibrium and planner's optimum. Attention is focussed on alternative export specifications and optimum tariff problems. The optimum tariff problem is discussed from the point of view of both large (the usual case) and small open economies, The argument is illustrated by numerical results based on two models of the Hungarian economy

Adaptability of Nonlinear Equilibrium Models to Central Planning

Linear multisectoral models have for long been applied in the Hungarian national economic planning. Price-quantity correspondences and interaction, however, cannot easily be taken into account in the traditional linear framework. Computable general equilibrium modelers in the West have developed techniques which use extensively price-quantity interdependences. However, since they are usually presented with the controversial strict neoclassical interpretation, the possibility of their adaptation to socialist planning models has been concealed. This paper reflects on some results of a research investigating the possible adaptation of equilibrium modeling techniques to central planning mode Is

A Reference Point Approach to Nonlinear Macroeconomic Multiobjective Models

Programming-type multisectoral macroeconomic planning models are almost exclusively linear. Also, they often rely on traditional approaches such as sensitivity analysis and aggregated social welfare functions in their treatment of multiple conflicting objectives. In this paper the traditional linear programming framework is extended to handle nonlinear models and combined with an adaptive interactive decision support system to deal with multiple objectives. The decision support system is based on the reference point method. Results obtained from a simplified model of the Hungarian economy provide a numerical illustration of the approach, and an appendix containing an analysis of the shadow prices derived from the linear and nonlinear planning models is also given

On the Solution of a Computable General Equilibrium Model

Many of today's most significant socioeconomic problems, such as slower economic growth, the decline of some established industries, and shifts in patterns of foreign trade, are international or transnational in nature. But these problems manifest themselves in a variety of ways; both the intensities and the perceptions of the problems differ from one country to another, so that intercountry comparative analyses of recent historical developments are necessary. Through these analyses we attempt to identify the underlying processes of economic structural change and formulate useful hypotheses concerning future developments. The understanding of these processes and future prospects provides the focus for IIASA's project on Comparative Analysis of Economic Structure and Growth. Our research concentrates primarily on the empirical analysis of interregional and intertemporal economic structural change, on the sources of and constraints on economic growth, on problems of adaptation to sudden changes, and especially on problems arising from changing patterns of international trade, resource availability, and technology. The project relies on IIASA's accumulated expertise in related fields and, in particular, on the data bases and systems of models that have been developed in the recent past. This paper is concerned with the solution algorithm of a nonlinear multisectoral model. The model has been developed at IIASA and falls into the class of so called computable general equilibrium models. The economic theoretical properties of the model, as well as some results of simulations based on it, have been reported elsewhere

Foreign Trade in Macroeconomic Models: Equilibrium, Optimum, and Tariffs

The treatment of foreign trade has a great influence on the results that can be obtained from multisectoral macroeconomic models. This manifests itself clearly in the problem of overspecialized solutions which arises in most of the models currently in use. This unwanted phenomenon is treated differently in the two main classes of models: programming models and general equilibrium models. This paper discusses the theoretical and methodological problems related to this issue using a special comparative framework (laissez-faire equilibrium and planner's optimum). Attention is focussed on alternative export specifications and optimum tariff problems. The argument is illustrated by numerical results based on two models of the Hungarian economy