This paper analyzes an economic system in which rates of profit are not uniform but differ from one sector to another, and discusses the acceptable intervals of variation of the rates of profit compatible with non-negative prices. The investigation is conducted in a Leontief price model with fixed capital. The limits of variation of the rates of profit are ascertained using a mathematical algorithm based on the properties of Z matrices and dominant-diagonal matrices.
Sectoral Rates of Profit and Productive Structure
MARANGONI, Giandemetrio
1995-01-01
Abstract
This paper analyzes an economic system in which rates of profit are not uniform but differ from one sector to another, and discusses the acceptable intervals of variation of the rates of profit compatible with non-negative prices. The investigation is conducted in a Leontief price model with fixed capital. The limits of variation of the rates of profit are ascertained using a mathematical algorithm based on the properties of Z matrices and dominant-diagonal matrices.
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