Sraffian Economics

Sraffian economics, based on the work of economist Piero Sraffa, focuses on production and distribution rather than individual consumer choices. It emphasizes the role of production processes and the interrelationships between industries, suggesting that prices are determined by costs of production, such as inputs and labor. Sraffa challenged mainstream economics, arguing that it was insufficient to explain how goods are produced and distributed. His work laid the foundation for understanding how economic systems function without relying heavily on subjective preferences, highlighting the importance of technological conditions and social relations in shaping the economy.