16 Pages

The aggregate neoclassical theory of distribution and the concept of a given value of capital: the lines of a more general critique

Some years ago, in a book on The theory of production, Kurz and Salvadori (K-S hereafter) presented a reconstruction of the critique of neoclassical theory of distribution (Kurz and Salvadori, 1995). Using the main results of the debates on capital theory from the 1960s and 1970s, this reconstruction offered an opportunity to return to important aspects of those controversies that were left open in previous discussion. In particular, a crucial point of those controversies and K-S’s reconstruction deserves new consideration: the specific demonstration of the impossibility of extending the schema of the determination of distribution in the one-good economy (the so-called corn economy) to multi-good models. The current line of critique of the aggregate neoclassical theory of distribution, represented by this demonstration, is very weak. It can (and must) be corrected. Following previous contributions of mine on this theme,1 the aim of this paper is to further specify and develop the issue of reformulating in more effective terms the critique of the aggregate approach of neoclassical theory.