This compelling book contains a comprehensive analytical treatment of the theory of production in a long-period framework. Although the authors take a 'Classical' approach to their subject, the scope of investigation and methods employed should interest all economic theorists. Professors Kurz and Salvadori explore economic systems that are characterised by a particular kind of primary input in the production process, such as different kinds of labour and natural resources. These systems and the corresponding prices can be understood to reflect characteristic features of a capitalist market economy in an ideal way: they express the pure logic of the relationship between value and distribution in an economic system. Specific chapters deal with prices and income distribution, economic growth, joint production, fixed capital, scarce natural resources (both renewable and exhaustible), and heterogeneous labour. The historical origins of the concepts used are also discussed in considerable detail.
• Classical perspective to the theory of production, prices & distribution • Comprehensive and wide-ranging treatment of the subject • Includes a detailed examination of the historical origins of the subject
1. Free competition and long-period positions; 2. A one-commodity model; 3. Two-commodity models; 4. Models with any number of commodities; 5. Choice of technique; 6. Alternative descriptions of a 'technique'; 7. Fixed capital models; 8. Joint production; 9. Models with jointly utilized machines; 10. Land; 11. Persistent wage and profit rate differentials; 12. On limits to the long-period method; 13. Production as a circular flow and the concept of surplus; 14. The neoclassical theory of distribution and the problem of 'capital'; 15. On some alternative theories of distribution; Mathematical appendix.
'The Theory of Production is a tour de force that provides a needed authoritative survey of modern competitive theory on technology and prices. It seems a golden mean between mathematical complexities, policy alternatives, and historical geneses. I expect to wear out a copy every two years from extensive use.' Paul A. Samuelson, MIT
'The Theory of Production is a remarkably clear and precise statement of linear economic theory post-Sraffa. The sound analytical work is complemented by substantial historical notes in most chapters and the work is a pleasure to read.' Ivan Steedman, University of Manchester