A Sraffian Critique of the Classical Notion of Centre of Gravitation

Abstract

In this paper we use insights from Sraffa's classic, Production of Commodities by Means of Commodities, to argue that the classical notion of 'centre of gravitation' is not a sound concept. The market mechanics of labour allocation through price signals and quantity adjustments, given effectual demands, do not lead to a 'centre of gravitation'. We work out all such possible market mechanisms, including the specific classical case, and show that the 'centre of gravitation' is a non-attractive point in all cases. Copyright The Author 2009. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.