Entrepreneurship, knowledge and employment

Surplus and Reproduction

Yagi Takashi, Meiji University

The aim of this paper is to examine the relationship between surplus and the accumulation of capital in the Sraffa system and the system with fixed capital. The surplus of the system is measured in terms of labour. In this paper we will use two different notions of labour. One is the labour commanded by the standard net product at the end of the production period. This labour amount is calculated by dividing the standard income by the wage rate and denoted by N. Another notion is the labour embodied in the standard net product during one production period. This labour amount is denoted by L and calculated by setting the value of labour constant. The difference between N and L corresponds to the surplus which can be used to employ the increased labour, invest to accumulate fixed capital or consume goods. Our notions of labour are close to the labour commanded and the labour embodied of the Classical economists. But these notions are used in the process of reproduction to analyze the labour growth and capital accumulation.


Keywords: The Sraffa System, Reproduction, Classical Theory of Value, Labour Growth, Capital Accumulation

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