The course aims to go to the foundations of the theories of value and distribution in order to provide students who already have a first knowledge of micro and macroeconomics with the means to orient themselves, on the one hand, in the comparison between the main theories of value and distribution (or 'micro' theory) and, on the other hand, in the understanding of the implications that these theories have with regard to the determination of the general level of production (or 'macro' theory).
The course is divided into two parts. The first part is devoted to a comparison between the classical theory and the neoclassical (marginalist) theory of value and distribution. Particular attention is given to the reconstruction of the structure of the latter theory, presented in the general equilibrium version of Wicksell and Walras, and to the difficulties that this theory faces in treating capital as a productive factor.
The second part is devoted to the determination of the general level of production in the two theoretical approaches. Particular attention is given to the reconstruction of the Keynesian Revolution, through a direct reading of some parts of Keynes’ General Theory, and the discussion of the elements that have favoured its reabsorption in the Neoclassical Synthesis.
The course is divided into two parts. The first part is devoted to a comparison between the classical theory and the neoclassical (marginalist) theory of value and distribution. Particular attention is given to the reconstruction of the structure of the latter theory, presented in the general equilibrium version of Wicksell and Walras, and to the difficulties that this theory faces in treating capital as a productive factor.
The second part is devoted to the determination of the general level of production in the two theoretical approaches. Particular attention is given to the reconstruction of the Keynesian Revolution, through a direct reading of some parts of Keynes’ General Theory, and the discussion of the elements that have favoured its reabsorption in the Neoclassical Synthesis.
teacher profile teaching materials
1. Theories of value and distribution: the different theoretical approaches. The connections with the theory of production. Outlines of the surplus approach
I. THE MARGINALIST THEORY: DETERMINATION
OF VALUE IN PURE EXCHANGE EQUILIBRIUM
2. Marginal utility. Individual equilibrium.
3. Individual supply and demand curves (independent and non-independent goods).
4. Collective supply and demand curves. General equilibrium (graphic study): existence; stability; uniqueness/multiplicity.
5. Equations of general equilibrium (2 goods, m individuals; specialization and general case). Walras' law.
6. Possible 'exceptions': superabundance and free goods (or non-existence of equilibrium?); increasing demand curve and instability.
II. THE MARGINALIST THEORY: VALUE AND DISTRIBUTION
IN THE CASE OF PRODUCTION WITHOUT CAPITAL
7. Marginal utility and supply curves of the factors. Indirect substitutability and factor demand curves.
8. Income distribution and price of commodities (supply curves for commodities). Equations of general equilibrium in the case of production with fixed coefficients. Walras' law.
9. The problem of the existence of equilibrium under the hypothesis of fixed coefficients. The hypothesis of variable coefficients: marginal productivity.
10. The problem of product exhaustion.
11. The marginalist theory and the notion of substitutability (plausibility of the notion and its role within the theory). The simultaneous determination of prices and quantities.
III. THE MARGINALIST THEORY: VALUE AND DISTRIBUTION
IN THE CASE OF PRODUCTION WITH CAPITAL
12. Production with capital: the problem of the variability of coefficients; the condition of uniformity of the profit rate.
13. The treatment of capital as a complex of quantities and the absence of a uniform profit rate.
14. The treatment of capital as a single quantity: capital as a sum of value. Problems on the supply side. Problems on the demand side.
Programme
INTRODUCTION1. Theories of value and distribution: the different theoretical approaches. The connections with the theory of production. Outlines of the surplus approach
I. THE MARGINALIST THEORY: DETERMINATION
OF VALUE IN PURE EXCHANGE EQUILIBRIUM
2. Marginal utility. Individual equilibrium.
3. Individual supply and demand curves (independent and non-independent goods).
4. Collective supply and demand curves. General equilibrium (graphic study): existence; stability; uniqueness/multiplicity.
5. Equations of general equilibrium (2 goods, m individuals; specialization and general case). Walras' law.
6. Possible 'exceptions': superabundance and free goods (or non-existence of equilibrium?); increasing demand curve and instability.
II. THE MARGINALIST THEORY: VALUE AND DISTRIBUTION
IN THE CASE OF PRODUCTION WITHOUT CAPITAL
7. Marginal utility and supply curves of the factors. Indirect substitutability and factor demand curves.
8. Income distribution and price of commodities (supply curves for commodities). Equations of general equilibrium in the case of production with fixed coefficients. Walras' law.
9. The problem of the existence of equilibrium under the hypothesis of fixed coefficients. The hypothesis of variable coefficients: marginal productivity.
10. The problem of product exhaustion.
11. The marginalist theory and the notion of substitutability (plausibility of the notion and its role within the theory). The simultaneous determination of prices and quantities.
III. THE MARGINALIST THEORY: VALUE AND DISTRIBUTION
IN THE CASE OF PRODUCTION WITH CAPITAL
12. Production with capital: the problem of the variability of coefficients; the condition of uniformity of the profit rate.
13. The treatment of capital as a complex of quantities and the absence of a uniform profit rate.
14. The treatment of capital as a single quantity: capital as a sum of value. Problems on the supply side. Problems on the demand side.
Core Documentation
Lezioni sulla teoria neoclassica (handouts)