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Carlo Milana

Publications and source records attributed to Carlo Milana.

2 recordsLinked to original sources
arXiv2019

Refuting Samuelson's Capitulation on the Re-switching of Techniques in the Cambridge Capital Controversy

Paul A. Samuelson's (1966) capitulation during the so-called Cambridge controversy on the re-switching of techniques in capital theory had implications not only in pointing at supposed internal contradiction of the marginal theory of production and distribution, but also in preserving vested interests in the academic and political world. Based on a new non-switching theorem, the present paper demonstrates that Samuelson's capitulation was logically groundless from the point of view of the economic theory of production.

econ.TH↗
arXiv2019

Solving the Reswitching Paradox in the Sraffian Theory of Capital

The possibility of re-switching of techniques in Piero Sraffa's intersectoral model, namely the returning capital-intensive techniques with monotonic changes in the profit rate, is traditionally considered as a paradox putting at stake the viability of the neoclassical theory of production. It is argued here that this phenomenon can be rationalized within the neoclassical paradigm. Sectoral interdependencies can give rise to non-monotonic effects of progressive variations in income distribution on relative prices. The re-switching of techniques is, therefore, the result of cost-minimizing technical choices facing returning ranks of relative input prices in full consistency with the neoclassical perspective.

econ.TH↗