Abstract

BENITEZ SANCHEZ, Alberto  and  BENITEZ SANCHEZ, Alejandro. Upper and Lower Bounds for Capital and Wages. Econ: teor. práct [online]. 2012, n.37, pp.11-32. ISSN 2448-7481.

The paper considers the division of a production system into departments I and II introducing a further division of department I into a homothetic and a complementary sector. It shows the existence of nontrivial upper and lower bounds for the capital stock and the wages that depend on this division contributing, among other results, to explain the quasilinearity of the wage-profit curve found in some empirical researches.

Keywords : capital theory; income distribution; Marx; Sraffa; wage-profit curve.