CARLO BENETTI

Disequilibrium, reproduction and money: a Classical approach

Carlo Benetti, Christian Bidard, Edith Klimovsky, Antoine Rebeyrol

Abstract

We consider a bisector reproduction model in which money is introduced as a pure means of exchange issued by a bank at the producers' requests. Each capitalist aims at maximising accumulation in his own sector. Their plans are based on available quantities and expected prices. Effective prices are determined by a market-clearing mechanism. Temporary disequilibria occur in both physical and monetary terms. The settlement of the monetary balances is operated by means of a transfer of capital goods. Final allocations and effective productions are thus determined. The dynamics of the economy are those of a sequence of temporary disequilibria and let appear several possibilities (local or global stability, cycles) depending on the values of the parameters.

Mot(s) clé(s)

Classical Reproduction, Monetary prices, Disequilibrium, Growth, Cycle

Reproduction and temporary disequilibrium: a Classical approach

Carlo Benetti, Christian Bidard, Edith Klimovsky, Antoine Rebeyrol

Abstract

We build a bisector reproduction model with classical features in which the capitalists aim at maximizing accumulation of their profits. At variance with gravitation models, it is assumed that they invest their profits in their own industry. Their plans are based on actual productions and expected prices. Effective prices and effective allocations of resources are determined by a market-clearing mechanism. A simple law on the formation of expectations allows us to define the dynamics of disequilibria, which let appear endogenous self-sustained fluctuations, around a long-run path. The long-run rate of growth and the amplitude of the fluctuations depend on the initial conditions.

Mot(s) clé(s)

Classical Reproduction, Market prices, Disequilibrium, Growth, Cycle

Equilibre et possibilité de crises dans le modèle de reproduction élargie de Marx

Carlo Benetti, Alain Béraud, Edith Klimovsky, Antoine Rebeyrol

Abstract

In the numerical examples used by Marx to study the reproduction of social capital, the economy reaches a steady growth path in only two periods. This surprising outcome has been interpreted by Marx’s readers as a property of a model which excludes any sort of economic crisis. This paper shows that this is not the case. Depending on the proportion between sectors and on the accumulation rate in the sector producing the means of production, two kinds of crises can occur. Following a suggestion of Marx, we emphasize the analysis of the physical conditions of reproduction and, on such a basis, we determine the critical proportions beyond which a crisis occurs. If, as in Marx, commodities are exchanged at their labor value, the critical proportions will be changed.

Mot(s) clé(s)

Marx; reproduction; crisis