Full text: Steedman versus Kalecki

conditions of joint production, in other words a generalisation of 
the theory of the earlier section of how mark up pricing is 
properly shown to function, he is disappointed: These sections 
only purport to show how joint production complicates the results 
of the mark up teory when the whole proceeds are marked up ,the 
allocation to the prices of individual products being left 
undetermined. Some readers may feel somewhat of a dupe but I am 
not surprised, since the joint production constitutes a major 
difficulty for the generalisation of Sraffa's price theory which 
we may hardly expect to be removed very soon. 
But let us turn again to the earlier section where Steedmann. 
proceeds to deal with Kalecki's theory of distribution. Let me at 
first remove a question which he raises repeatedly in this 
context: Steedmann asks why Kaleckians are so interested in the 
share of wages and make no reference in the same context to the 
real wage.The answer is that they are talking about the 
distribution of income which concerns only relative shares of wage 
or profit. The real wage is a different thing, depending on other 
facts as well, such as productivity or general standard of life. 
It is treated, rightly, in a different chapter. 
The Kaleckian equation which relates to distribution has the 
following form: 
w - 1 
1 + ( k-1 )( j-1 ) 
where w is the share of wages in the value added, k is the ratio 
of 
proceeds to prime cost and j the ratio of the aggregate cost of 
materials to the wage bill. Note that Kalecki avoids the use of a 
price variable in the aggregate which is indeed reasonable.
	        

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