Abstract
In this paper, theories of the Neoclassical School and the Neoricardian schools were stated and compared about the wage determination and distribution: the Marginal Productivity Theory and the Sraffa System. The Neoclassical theory was examined firstly; its evolution, main characteristics and what results we will face with when we relax its central assumptions. Then, the Neoricardian theory was examined; its relations with Ricardo and Marx, its critiques about the marginal productivity theory and the themes of the system. The main difference between Sraffa and Neoclassics was found as the marginal productivity theory uses the marginal products and prices as data in order to determine the wages and profits, but in the Sraffa system, with the help of the physical conditions of production, one of the unknown from the profit rate, wage and prices is sufficient to determine all of the others simultaneously. In addition, in the Sraffa system, a commodity can be both a factor of production and output whereas in the marginal productivity theory production process has only one way direction.
FAZIL KAYIKÇI. (2019) Neoclassical versus Neoricardian Schools on Wage Determination, International Review of Management and Business Research, Volume 8, Issue 3.
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