Monday, July 06, 2026

On Building On Pasinetti's Lectures On The Theory Of Production

I have been re-reading Pasinetti's 1977 book. I claim I am original in partitioning parameter spaces with fluke switch points, concrete numerical examples, certain diagrams for visualizing certain analyses, and extending the capital critique to non-competitive markets. I have noted that participants in the 1966 QJE symposium, including Pasinetti, explicitly noted the possibility of fluke switch points.

Pasinetti’s Lectures contain:

  • The algebra repeated in my derivation of Hayek's triangle (p. 91, p. 118).
  • An explanation of how a switch point can occur along a single wage curve. The numeraire is a basic good. Two techniques differ in the method or process for producing a non-basic good (p. 161).
  • A fluke case with three or more wage curves intersecting at a switch point (p. 164).

The first is an elaboration of Sraffa's reduction to dated labor quantities. I do not feel obligated to cite Newton when I take a derivative. This reduction is close to that. I do not see others linking up this analysis to Hayek's triangles, though,

Pasinetti does not provide a figure or numeric example illustrating the second point. Land is non-basic. Perhaps I should note this in my example with fixed capital and rent.

Pasinetti does provide a figure with three wage curves intersecting in a single switch point. But citing articles from 1966 is sufficient.

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