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Copyright © Cambridge Political Economy Society

research-article

Pasinetti's vertically hyper-integrated sectors and natural prices

Marc Lavoie*

*University of Ottawa Canada

Abstract

Hyper-vertically integrated sectors and their natural prices, as presented by Pasinetti (1988), are re-examined in a slightly different framework and with the help of a very simple three-industry model. It is shown that while Pasinetti's analysis takes into account basic commodities and interdependences, it short-circuits them. It is then asked whether such an approach is required to analyse growing sub-systems.

Manuscript received April 7, 1995; final version received February 12, 1996.


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