Macroeconomic Policy, Growth and Income Distribution in the Brazilian Economy in the 2000s

The Brazilian economy grew by 4.2 percent annually from 2004-2010, more than double its annual growth from 1999-2003 or indeed its growth rate over the prior quarter century. This growth was accompanied by a significant reduction in poverty and extreme poverty, especially after 2005, as well as reduced inequality. This paper looks at the combination of external changes and changes in macroeconomic policy that contributed to these results

Understanding and overcoming the "positive profits with negative surplus-value" paradox

ABSTRACT This paper explains the "positive profits with negative surplus-value" example of Steedman (1975) and shows that while in joint production systems individual labour values can be negative, the claim that the total labour embodied in the surplus product of the economy (surplus-value) can also be negative is based on assumptions that have no economic meaning (such as negative activity levels).The paper also provides a way to measure the surplus-value of joint production systems which overcomes the problems of the traditional concept and restates the proposition that a positive amount of surplus labour is a necessary condition for positive profits

Equilíbrio neoclássico de mercado de fatores: um ponto de vista sraffiano

This paper presents a Sraffian criticism of Kenneth Arrow's defence of the empirical relevance of neoclassica! general equilibrium theory. The neoclassical explanation would only make empirical sense if market clearing really happens in the markets for factors of production. This in turn depends on two things: (a) nominal and real "flexibility" of factor prices; and (b) on the (direct and indirect) substitution effects being the dominant effect of factor price changes. However: 1. nominal factor price flexibility is both empirically implausible and anyway tends to be destabilizing (and cause a lack of real flexibility) 2. Sraffa's capital critique shows that in any case the substitution effect may break down completely in the real-world case of heterogeneous capital. An alternative (and more consistent) Sraffa-based explanation of the facts is also briefly sketched.This paper presents a Sraffian criticism of Kenneth Arrow's defence of the empirical relevance of neoclassica! general equilibrium theory. The neoclassical explanation would only make empirical sense if market clearing really happens in the markets for factors of production. This in turn depends on two things: (a) nominal and real "flexibility" of factor prices; and (b) on the (direct and indirect) substitution effects being the dominant effect of factor price changes. However: 1. nominal factor price flexibility is both empirically implausible and anyway tends to be destabilizing (and cause a lack of real flexibility) 2. Sraffa's capital critique shows that in any case the substitution effect may break down completely in the real-world case of heterogeneous capital. An alternative (and more consistent) Sraffa-based explanation of the facts is also briefly sketched

Quesnay and the analysis of the surplus in an agrarian capitalist economy

In order to discuss the ‘rational foundation’ of certain aspects of Quesnay´s theory we use a simple formalization of the necessary connections between assumptions about the techniques in use, the distribution of income between the classes and sectors, the system of relative prices. We argue that Quesnay´s system was a truly capitalist agrarian economy and that he was indeed a pioneer of the classical political economy/surplus approach to economics as identified first by Marx, Sraffa and Garegnani, the physical surplus of grains being the necessary basis for his analysis of the distribution and relative prices

Uma outra estratégia é possível

Neste artigo, analisa-se a estratégia política econômica adotada pelo novo governo brasileiro, primeiramente do ponto de vista do erro de diagnóstico do Governo em relação: (a) à conjuntura internacional; (b) ao comportamento dos agentes nos mercados financeiros; e (c) à situação estrutural da conta corrente brasileira. Mostra-se, então, que essa estratégia, além de ter custos elevados, está fadada ao fracasso, se não for alterada rapidamente. Segue-se, então, uma lista de oito pontos que ilustram o tipo de mudança radical de estratégia, com o objetivo de tornar o combate à restrição externa da economia brasileira a prioridade número um da política econômica

Quesnay and the analysis of the surplus in an agrarian capitalist economy

In order to discuss the ‘rational foundation’ of certain aspects of Quesnay´s theory we use a simple formalization of the necessary connections between assumptions about the techniques in use, the distribution of income between the classes and sectors, the system of relative prices. We argue that Quesnay´s system was a truly capitalist agrarian economy and that he was indeed a pioneer of the classical political economy/surplus approach to economics as identified first by Marx, Sraffa and Garegnani, the physical surplus of grains being the necessary basis for his analysis of the distribution and relative prices

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As leis de rendimento nas teorias neoclássicas do crescimento: uma crítica sraffiana

The paper examines critically the exogenous and endogenous neoclassical growth theories, with particular attention given to the question of assumptions on marginal returns to factors and returns to scale. It shows that a number of deficiencies In the treatment of topics such as the connection between accumulation and growth and increasing returns to scale, together with many of their most implausible results and artificial assumptions, are In fact the high price imposed by the insistence on basing the theory of growth In the traditional and flawed marginalist explanation of distribution.Este artigo examina criticamente as teorias neoclássicas de crescimento, exógenas e endógenas, com atenção particular para a questão das suposições de retornos marginais para os fatores e os retornos de escala. Mostramos que muitas das deficiências no tratamento de tópicos tais como a conexão entre acumulação e crescimento e os retornos crescentes de escala, junto com muitos de seus resultados implausíveis e hipóteses artificiais, são, na realidade, o alto preço imposto pela insistência em baseara teoria do crescimento na tradicional e problemática abordagem marginalista da distribuição. Palavras-chave Crescimento endógeno; Sraffa; retornos crescentes de escala