The Dynamic Equalization of Profit Rates for Input-Output Models with Fixed Capital

Recently there have been numerous new interpretations of the classical competitive process (Hollander, 1973; Garegnani, 1983; Roncaglia, 1978; Shaikh, 1980; Semmler, 1984). There have also been several attempts to model classical competitive dynamics. Within the latter group two trends are emerging. One line of thought explores the dynamics of the competitive process on the basis of classical theory by referring to supply and demand analysis (Nikaido, 1977, 1983; Flaschel, 1983; Flaschel/Semmler, 1985a, 1985b; Duménil/Lévy, 1983, 1984; Franke, 1985; Boggio, 1984; Steedman, 1984). The other direction utilizes the theory of markup pricing to elaborate on the stability properties of classically oriented production price systems (Nikaido/Kobayashi, 1978; Krause, 1983; Fujimoto/Krause, 1985; Boggio, 1985; Catz/Laganier, 1984).