Marx and Input-Output Analysis and General Equilibrium Theory

Ezra Davar, null

doi:10.13169/worlrevipoliecon.7.1.0127

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World Review of Political Economy

Volume 7, Issue 1

Record: found
Abstract: found
Article: found

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Marx and Input-Output Analysis and General Equilibrium Theory

research-article

Author(s): Ezra Davar

Publication date (Print): Spring 2016

Journal: World Review of Political Economy

Publisher: Pluto Journals

Keywords: Smith, Marx, Walras, input-output, general equilibrium

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Abstract

This article shows the following: (1) Marx has given a description of the relationship between industries, which is equivalent to Walras's theoretical version of input-output and to Leontief's empirical (monetary) input-output analysis. (2) Marx's version of general equilibrium theory is characterized by the attributes required for the formulation of the theoretical (abstract) model: the conditions for the existence of the general equilibrium state and simplified assumptions. His theory is characterized by different rates of profit; unemployment of primary factors with positive prices; unsold commodities and so on. Also, Marx's money theory, as well as Smith's and Walras's, is relevant to modern society. Moreover, Marx, as well as Walras, stated repeatedly that in reality equilibrium is never achieved; but he asserted that the study of equilibrium achievement is necessary for managing real economics, by revealing the nature of distortions of equilibrium states and treating them.

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Author and article information

Journal

Journal ID (doi): 10.13169

Journal ID (publisher-id): worlrevipoliecon

Title: World Review of Political Economy

Publisher: Pluto Journals

ISSN (Print): 2042891X

ISSN (Electronic): 20428928

Publication date (Print): Spring 2016

Volume: 7

Issue: 1

Pages: 127-144

Article

Publisher ID: worlrevipoliecon.7.1.0127

DOI: 10.13169/worlrevipoliecon.7.1.0127

SO-VID: 09881d42-137a-48ff-81a5-a6d302bd3b59

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History

References

Arrow, K. J. 1989. “Von Neumann and the Existence Theorem for General Equilibrium.” In John von Neumann and Modern Economics , edited by M. Dore, S. Chakravarty, and R. Goodwin, 15–28. Oxford: Clarendon Press.
Arrow, K. J., and F. H. Hahn. 1971. General Competitive Analysis . San Francisco: Holden-Day.
Arrow, K. J., and D. Starrett. 1973. “Cost-Theoretical and Demand-Theoretical Approaches to the Theory of Price Determination.” In Carl Menger and the Austrian School of Economics , edited by J. R. Hicks and W. Weber, 129–48. Oxford: Clarendon Press.
Brody, A. 1970. Proportions, Prices and Planning . Amsterdam: North-Holland.
Davar, E. 1994. The Renewal of Classical General Equilibrium Theory and Complete Input-Output System Models . Hong Kong: Avebury.
Davar, E. 2011. “Flaws of Modern Economic Theory: The Origins of the Contemporary Financial-Economic Crisis.” Modern Economy 2: 25–30.
Davar, E. 2012. “Is ‘Walras’ Law' Really Walras's Original Law?” World Review of Political Economy 3 (4): 478–500.
Davar, E. 2013. Input-Output Analysis and Contemporary Economics . Saarbrucken: Lambert Academic Publishing.
Davar, E. 2014a. “How Flaws in the General Theory Render It Irrelevant to the Real World.” Modern Economy 5 (1): 93–104.
Davar, E. 2014b. “Walras and Contemporary Financial-Economic Crisis.” Modern Economy 5 (5): 635–56.
Düppe, T., and E. R. Weintraub. 2014. Finding Equilibrium: Arrow, Debreu, McKenzie and the Problem of Scientific Credit . Princeton: Princeton University Press.
Ingrao, B., and G. Israel. 1990. The Invisible Hand: Economic Equilibrium in the History of Science . Cambridge, MA: MIT Press.
Lange, O. 1969. Theory of Reproduction and Accumulation . Oxford: Pergamon Press.
Leontief, W. 1936. “Quantitative Input and Output Relations in the Economic System of the United States.” The Review of Economic Statistics 18: 105–25.
Leontief, W. (1941) 1951. The Structure of American Economy, 1919–1929 . 2nd ed. New York: Oxford University Press.
Marx, K. 1957. Capital , vol. II. Moscow: Foreign Language Publishing House.
Marx, K. 1959a. Capital , vol. I. Moscow: Foreign Language Publishing House.
Marx, K. 1959b. Capital , vol. III. Moscow: Foreign Language Publishing House.
Marx, K. 1969. Theories of Surplus Value . Part I. London: Lawrence & Wishart.
Morishima, M. 1973. Marx's Economics . Cambridge: Cambridge University Press.
Nemchinov, V. S. 1964. Ekonomika I matematicheskie metody . Moscow: Nauka.
Novozhilov, V. V. 1970. Problems of Cost-Benefit Analysis in Optimal Planning . New York: White Plains.
Schumpeter, J. A. 1954. History of Economic Analysis . New York: Oxford University Press.
Smith, A. (1776) 1937. The Wealth of Nations . Canaan Edition. New York: Random House.
Stone, R. 1961. Input-Output and National Accounts . Paris: Organization for European Economic Co-operation.
Walras, L. 1954. Theory of Pure Economics . Translated by W. Jaffe. London: Allen & Unwin.
Walras, L. 2005. Studies in Applied Economics Theory of the Production of Social Wealth . 2 vols. Translated by J. van Daal. London: Routledge.
Weintraub, E. R. 1985. General Equilibrium Analysis Studies in Appraisal . Cambridge: Cambridge University Press.
Weintraub, E. R. 2002. How Economics Became a Mathematical Science . Durham: Duke University Press.

Comments

Comment on this article

[1] Arrow, K. J. 1989. “Von Neumann and the Existence Theorem for General Equilibrium.” In John von Neumann and Modern Economics , edited by M. Dore, S. Chakravarty, and R. Goodwin, 15–28. Oxford: Clarendon Press.

[2] Arrow, K. J., and F. H. Hahn. 1971. General Competitive Analysis . San Francisco: Holden-Day.

[3] Arrow, K. J., and D. Starrett. 1973. “Cost-Theoretical and Demand-Theoretical Approaches to the Theory of Price Determination.” In Carl Menger and the Austrian School of Economics , edited by J. R. Hicks and W. Weber, 129–48. Oxford: Clarendon Press.

[4] Brody, A. 1970. Proportions, Prices and Planning . Amsterdam: North-Holland.

[5] Davar, E. 1994. The Renewal of Classical General Equilibrium Theory and Complete Input-Output System Models . Hong Kong: Avebury.

[6] Davar, E. 2011. “Flaws of Modern Economic Theory: The Origins of the Contemporary Financial-Economic Crisis.” Modern Economy 2: 25–30.

[7] Davar, E. 2012. “Is ‘Walras’ Law' Really Walras's Original Law?” World Review of Political Economy 3 (4): 478–500.

[8] Davar, E. 2013. Input-Output Analysis and Contemporary Economics . Saarbrucken: Lambert Academic Publishing.

[9] Davar, E. 2014a. “How Flaws in the General Theory Render It Irrelevant to the Real World.” Modern Economy 5 (1): 93–104.

[10] Davar, E. 2014b. “Walras and Contemporary Financial-Economic Crisis.” Modern Economy 5 (5): 635–56.

[11] Düppe, T., and E. R. Weintraub. 2014. Finding Equilibrium: Arrow, Debreu, McKenzie and the Problem of Scientific Credit . Princeton: Princeton University Press.

[12] Ingrao, B., and G. Israel. 1990. The Invisible Hand: Economic Equilibrium in the History of Science . Cambridge, MA: MIT Press.

[13] Lange, O. 1969. Theory of Reproduction and Accumulation . Oxford: Pergamon Press.

[14] Leontief, W. 1936. “Quantitative Input and Output Relations in the Economic System of the United States.” The Review of Economic Statistics 18: 105–25.

[15] Leontief, W. (1941) 1951. The Structure of American Economy, 1919–1929 . 2nd ed. New York: Oxford University Press.

[16] Marx, K. 1957. Capital , vol. II. Moscow: Foreign Language Publishing House.

[17] Marx, K. 1959a. Capital , vol. I. Moscow: Foreign Language Publishing House.

[18] Marx, K. 1959b. Capital , vol. III. Moscow: Foreign Language Publishing House.

[19] Marx, K. 1969. Theories of Surplus Value . Part I. London: Lawrence & Wishart.

[20] Morishima, M. 1973. Marx's Economics . Cambridge: Cambridge University Press.

[21] Nemchinov, V. S. 1964. Ekonomika I matematicheskie metody . Moscow: Nauka.

[22] Novozhilov, V. V. 1970. Problems of Cost-Benefit Analysis in Optimal Planning . New York: White Plains.

[23] Schumpeter, J. A. 1954. History of Economic Analysis . New York: Oxford University Press.

[24] Smith, A. (1776) 1937. The Wealth of Nations . Canaan Edition. New York: Random House.

[25] Stone, R. 1961. Input-Output and National Accounts . Paris: Organization for European Economic Co-operation.

[26] Walras, L. 1954. Theory of Pure Economics . Translated by W. Jaffe. London: Allen & Unwin.

[27] Walras, L. 2005. Studies in Applied Economics Theory of the Production of Social Wealth . 2 vols. Translated by J. van Daal. London: Routledge.

[28] Weintraub, E. R. 1985. General Equilibrium Analysis Studies in Appraisal . Cambridge: Cambridge University Press.

[29] Weintraub, E. R. 2002. How Economics Became a Mathematical Science . Durham: Duke University Press.

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