STEEDMAN^ VERSUS KALECKI In nis interesting paper Steedmanft^ gives some advice - albeit in the form of strictures - to the followers of Kalecki: They should make use of the input-output techniques in connection with the theory of pricing and distribution. In this way they would realise that outputs are at the same time inputs, prices are costs, and the feedback from prices to cost, neglected by Kalecki, would become obvious to them. In a general system of pricing the prices obtained by marking up direct cost would again directly influence the cost of the material inputs and therefore the results of the marking up of other industries and ultimately also that of the industry from which we started. Let me now jump immediately to an algebraic equation of Kalecki which is criticised and corrected by Steedmanij. It relates the share of wages in the product w to the ratio of proceeds to prime cost ( the mark up plus unity ) k , given j the ratio of the cost of materials to the wage bill. 2 + (k-1) (j-l) Steedmanix derives this equation ab ovo as it were from the price equations of the various industries,using the input output matrix so that he gets a feedback from the prices to the cost of materials and this leads him to correct the above formula by aE term which accounts for these feedbacks. It will be noted that we can do such a construction only in our imagination because we have no direct data for the mark upl Now the above formula is applied by Kalecki directly to the data of the Census of Manufactures in Ha 0^ '