# Neo-Ricardianism

The Neo - Ricardian school is an economics school, which sees itself in the tradition of the British economist David Ricardo and based on the works of Piero Sraffa, in particular its goods means goods production.

As Neoricardianer apply, for example Pierangelo Garegnani and Bertram Schefold.

For the neoclassical Neoricardianische school borders from the criticism of the concept of capital. The neoclassical theory assumes a " real" world, consisting of factors of production such as labor and capital, goods, production techniques, etc. from, can be derived from the then monetary aspects such as prices, wages, interest. In the capital controversy, this was criticized by the Neoricardianern. The interest rate can not be determined as the marginal productivity of a real (in the sense of physically given ) factor capital in their opinion, but rather the value of capital and the interest rate can only be determined simultaneously, both being dependent on each other. Consequently, the neoclassical theory in determining the rate of interest is charged from the marginal productivity of capital is a circular argument.

In the simple case, each sector produces a good. This material can be supplied as an input to other industries or it serves as a consumer for the workers. From the consumption of the capitalists is usually abstracted simplistic. For each industry, there is an equation that specifies which inputs are required in accordance with the adopted as technically given input-output coefficients for producing a unit of output of each industry. It has been so for n Industries n equations, where n prices, the wage rate and the profit rate are to be determined. It is assumed that there is the same general rate of profit in all industries. One of the n prices is set as the " numeraire " equal to one. It remains mathematically one degree of freedom, which can be closed by either of the classical economy following a living wage for the wage is set, or it is assumed to be given by the central bank interest rate to which the rate of profit adapts by competition of enterprises.

To Marxist economic theory, the Neoricardianische school borders from the rejection of the labor theory of value. Prices are calculated directly. A "transformation" of labor values into prices is superfluous. Furthermore, the law of the tendency of the rate of profit is considered refuted the Okishio theorem.