Distribution and Growth in an Economy with Heterogeneous Capital and Excess Capacity

In a world of heterogeneous capital the aggregate capital-capacity ratio can change in a complicated way as the real wage rate changes and, therefore, nothing useful can be said, a priori, about the relationships between the real wage rate (or the aggregate profit share), the degree of capacity utilization and the rates of profit, capital accumulation and interest.Aggregate capital-capacity ratio; capacity utilization; heterogeneous capital; post-Keynesian theory; Sraffian theory

A neo-Ricardian critique of the traditional static theory of trade, customs unions and common markets

The vast majority of meaningful discussions about the processes of economic integration and liberalization of trade have so far revolved around the neoclassical theory. This paper is based on the neo-Ricardian theory, briefly investigates the issues of free trade, customs unions and common markets, and shows that the relevant neoclassical propositions do not hold and/or make no sense in a world ‘of production of commodities by means of commodities’. Thus, the fundamental theoretical presuppositions of the aforesaid debate are called in question.common markets; customs unions; free trade; neo-Ricardian theory; traditional static theory

A Critical Note on Marx’s Theory of Profits

This paper shows that Marx’s theory of profits is based, implicitly, on the existence of a vertically integrated sector that (i) can produce the exact amount of commodities re-ceived as wages; (ii) includes all the processes of production actually used in the econ-omy considered; and (iii) constitutes a quasi-one-commodity system. Nevertheless, the said sector does not always exist, whilst when it exists, positive surplus labour is a nec-essary and sufficient condition for positive profits in this sector, pure and simple. Con-sequently, Marx’s theory of profits cannot be sustained.Marx’s theory of profits; surplus labour; uniform rate of profit; vertically integrated wage sector

A Critique of the ‘New Approach’ to the Transformation Problem and a Proposal

This paper shows that the ‘New Approach’ to the ‘problem of transforming values into prices’, first, is subjected to a crucial logical inconsistency and second, is not in a position to deal with the heterogeneous labour case. Thus, the paper proposes an approach, which overcomes these problems and concludes that values of commodities are their actual prices.Abstract social labour; heterogeneous labour; New Approach; transformation problem

Controllability, Observability, Regularity, and the so-called Problem of Transforming Values into Prices of Production

This paper specifies and interprets those direct relations which exist between the dual concepts of complete controllabil-ity/observability (Kalman, 1960), on the one hand, and the con-cept of the regular technique of production (Schefold, 1971), on the other. Specifically, it shows, first, that there is a certain dynamic system for determining labour values, which is connected with the usual system for determining prices of production (à la Sraffa, 1960, Part I) via the z-(Laplace) transform, and, second, that the said system of values is completely controllable when and only when the system of production prices is regular. In view of the above, it could be considered that the z-(Laplace) transform constitutes the solution to the – suitably reformulated – Marxian ‘problem of transforming values into prices of production’. However, on the basis of an economic interpretation of the z-(Laplace) transform, this paper shows, ultimately, not only that such a consideration is erroneous, but also that the supposed ‘problem’ is devoid of economic meaning.Control theory; controllability; observability; regular production technique; Sraffian theory; transformation problem

Return to devalued drachma, cost-push inflation and international competitiveness

This paper presents empirical estimates of the effects of a return to devalued drachma on the cost-inflation rate in the Greek economy. The results show moderate effects and the potential for substantial improvements in the balance of goods and services.Cost-Push Inflation, Drachma Devaluation, Dynamic Input-Output Price Models, Greek Economy, International Competitiveness

The rate of profit in the Greek economy 1988-1997. an input-output analysis

The evolution of the rate of profit reflects both changes in income distribution and technical conditions of production. The purpose of this paper is to present estimates of the rate of profit for the Greek economy using input-output data spanning the period 1988-1997 and, at the same time, to decompose the evolution of the rate of profit to its constituent components. These estimations are carried out in terms of (i) market prices; (ii) labour values; and (iii) prices of production.Greek Economy, Rate of Profit, Profit-Wage Ratio, Productivity of Labour and Capital, Input-Output Analysis

The Impact of Psychosocial Treatment on Medication Treatment for Opioid Use Disorder

In 2017, more than 70,000 people in the United States died due to drug overdoses; of that number, approximately 68% involved prescription or illicit opioids (CDC, 2019). Presently, insurance companies and physicians require all opioid use disorder (OUD) patients to receive counseling during medication treatment for OUD, despite the lack of evidence it is necessary for all patients. This requirement restricts access and creates hardship for those who may benefit from medication alone. In an effort to inform policy and improve quality of treatment, this nonexperimental, correlational study examined the relationship between individual counseling status and treatment outcomes in patients receiving medication treatment for OUD. Treatment outcome variables (treatment utilization, medication use, and opioid use) were extracted from the electronic health records of 11,551 adults who received treatment between January 2016 and January 2018. The impact of individual counseling on outcome variables was examined while controlling for confounding variables (gender, age, race, ethnicity, PTSD/trauma, anxiety, and criminal justice involvement). Bivariate analyses suggested women in OUD treatment were prone to have experienced PTSD/trauma and anxiety, while males were more likely to have CJS involvement. Women were more often retained in care and were in treatment for longer periods of time than males. In addition, older patients used OUD medication more often than younger patients; however, older patients were also more prone to use benzodiazepines and alcohol. Multivariate analyses revealed patients with increased rates of treatment utilization were more likely to utilize medication treatment and demonstrate reduced opioid use. In addition, higher rates of treatment utilization were related to reduced opioid use. Patients with more frequent interruptions in OUD treatment more often tested positive for opioids. This study revealed very little evidence that counseling during OUD treatment had a positive impact on treatment utilization. Yet, it found no evidence that counseling while active in treatment had an impact on medication utilization or opioid use. Although counseling may have some benefit for some patients in OUD treatment, these findings do not support mandating counseling during OUD treatment

Currency devaluation, external finance and economic growth: A note on the Greek case

Το παρόν άρθρο συνδυάζει δυναμικά, τιμιακάυποδείγματα εισροών-εκροών με το διευρυμένουπόδειγμα εισοδήματος-εξωτερικού ισοζυγίουτου Thirlwall, προκειμένου να εκτιμήσει την επί-πτωση μίας «επιστροφής στη δραχμή» στο ημε-δαπό εισόδημα. Τα ευρήματα δείχνουν ότι η ενλόγω επιστροφή δεν θα εμβαθύνει κατανάγκηντην ύφεση, καίτοι για την ανάκαμψη της οικονο-μίας είναι αναγκαία μία μάλλον μεγάλη ονομαστι-κή υποτίμηση, δηλαδή πάνω από 57% με 60%.This paper combines dynamic input-outputprice models with Thirlwall’s extended modelof balance of payments constrained growth toestimate the effect of a switch to drachma ondomestic income. The findings suggest that areturn to national currency would not necessarilydeepen the recession, although a ratherlarge nominal devaluation, i.e. in excess of57%-60%, is necessary for the recover

Currency devaluation, external finance and economic growth: A note on the Greek case

Το παρόν άρθρο συνδυάζει δυναμικά, τιμιακάυποδείγματα εισροών-εκροών με το διευρυμένουπόδειγμα εισοδήματος-εξωτερικού ισοζυγίουτου Thirlwall, προκειμένου να εκτιμήσει την επί-πτωση μίας «επιστροφής στη δραχμή» στο ημε-δαπό εισόδημα. Τα ευρήματα δείχνουν ότι η ενλόγω επιστροφή δεν θα εμβαθύνει κατανάγκηντην ύφεση, καίτοι για την ανάκαμψη της οικονο-μίας είναι αναγκαία μία μάλλον μεγάλη ονομαστι-κή υποτίμηση, δηλαδή πάνω από 57% με 60%.This paper combines dynamic input-outputprice models with Thirlwall’s extended modelof balance of payments constrained growth toestimate the effect of a switch to drachma ondomestic income. The findings suggest that areturn to national currency would not necessarilydeepen the recession, although a ratherlarge nominal devaluation, i.e. in excess of57%-60%, is necessary for the recover