Laws on Long-term Prices

Abstract

Long-term prices depend on distribution in a complex way, especially when choice of technique is allowed. It is shown, however, that the movement of prices in terms of wage obeys certain laws. More precisely, the movement is characterized in terms of linear programming problems. Necessary or sufficient conditions connected with the convexity of the wage-profit curves are also obtained. But, with regard to the relative prices of commodities, they vary arbitrarily, so that the Wicksell price effects are not under control. Copyright 1998 by Blackwell Publishers Ltd and The Victoria University of Manchester