According to Sraffian economists, both the aggregate and the general equilibrium versions of the neoclassical theory suffer from a logical inconsistence that prevents them from identifying a long-period position. The aim of this paper is to show that also Sraffa’s approach, based on the...

This paper deals with a multi-sector open economy in which the desired rate of accumulation is an increasing function of both the degree of capacity utilization and the aggregate profit share. It is shown that nothing can be said a priori about the long-period relationship between the real wage...