Abstract

Piero Sraffa's "Production of Commodities by Means of Commodities" (1960) is a critique of the "modern theory" of value and distribution; on the other hand it aims to a re-construction of the "classical theory". Both classical theory and modern theory are defective. The defects of classical theory, however, can be cured, whereas the defects of modern theory cannot. This is a curious case in the history of science.