Jerzy Osiatyñski: On the Price-Bias in Comparative Analysis of Planned and Market Economies. Forschungsberichte Nr. 13 Wiener Institut für Internationale Wirtschaftsvergleiche;
See the selected bibliography at the end of this paper.
In this paper it is assumed that only one homogenous type of labor exists. In the more general case, it is possible to operate with the matrix of labor-output coefficients. L, the elements lrj of which represent the quantity of the r-th type of labor needed per unit of j-th output. If “reduction coefficients” hr representing the degree of complexity of r-th type of labor are given, then the vector l (l' = h'L)can be regarded as the vector of “homogenized” labor-output coefficients. The attempts to correctly establish coefficients hr may create serious difficulties. Probably, the easiest solution would be to determine vector h as:
h = (1/ ws)w
where w is the vector of wage rates and ws is the “basic wage rate” or the wage rate for simple labor.
The coefficients cij of the matrix C, represent the quantity of consumer good i, which must be supplied to workers in the j-th industry per unit of product j. In definition (5), it is implicitly assumed that both the level and the structure of consumption in all industries are identical. This restrictive assumption can be relaxed without impairing on the validity of price models.
Let D be a matrix with elements dir representing consumption of consumer good i per unit of the r-th type of labor. Then the matrix C can be redefined as:
C = DL
where L is the matrix of labor-output coefficients which was defined in the Footnote (3).
Throughout this paper the dominant characteristic roots are denoted by the symbol lx with the subscript x standing here for the particular matrix.
In Hejl, Kyn, Sekerka (11) and (12), these prices are called “F-income prices” and “N-income prices”.
Sraffa (22) calls it “standard commodity”.
By a “M-Two-Channel Price”, we mean a price which keeps one channel proportionate to material costs and the other proportionate to wage costs. By a “C-Two-Channel Price”, we mean a price which keeps one channel proportionate to wage costs and the other proportionate to capital (11) p.110.
See Sekerka, Kyn, Hejl (12)