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Title:Convergence to natural prices in simple production PDF Logo
Authors:Wright, Ian
Issue Date:2011
Series/Report no.:Open Discussion Papers in Economics, The Open University 75
Abstract:This paper describes a nonlinear dynamic model of the convergence of market prices to natural prices in a multisector simple production economy under conditions of a constant technique and composition of demand. Prices and quantities adjust in real time according to the classical principle of cross-dual dynamics. The economy gravitates toward an asymptotically stable equilibrium in which natural prices are proportional to labor-values. To demonstrate an application of the model we reply to Mirowski's (1989) critique that Marx held a contradictory substance and field theory of value.
Document Type:Working Paper
Appears in Collections:Open Discussion Papers in Economics, The Open University

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