ISBN : 9782296086289
SRAFFA AND THE QUESTION OF EQUILIBRIUM)
Ajit Sinha2 Michel-Stéphane Dupertuis3
Abstract: Hahn's (1982) influential critique of Sraffa (1960) crucially rests on his conclusion
that "the only falsifiable entailment of the Sraffa equations is the postulate of a uniform
rate of profit". This paper argues that the uniformity of the rates of profit in Sraffa's system
is not an assumption but rather a logical necessity of a system that determines its prices internally.
It also shows that Hahn incorrectly identifies Sraffa' s sectoral rates of profit with
commodities''own rates of profit' of the intertemporal general equilibrium theory. This
mistake lies at the heart of Hahn's claim that Sraffa's theory is a special case of the general
equilibrium theory.