Neo-Ricardian Theory

Discipline: Economics

English economist David Ricardo (1772-1823) looked to labor theory in his unsuccessful search for an invariable measure of value.

The Italian-born economist Piero Sraffa (1898-1983) attempted to solve the problems raised in Ricardo's and Marx's work by viewing prices in terms of wages, quantities of capital, and profits, rather than as labor time. He asserted that real prices (measured in terms of composite, or standard commodities) do not change unless technology does.

P Sraffa, Production of Commodities by Means of Commodities (Cambridge, 1960)


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