The Sraffian Approach

The Sraffian approach, developed by economist Piero Sraffa, focuses on production and pricing in an economy. It emphasizes the relationships between goods produced, their inputs, and the labor needed for production, rather than just supply and demand. Sraffian theory investigates how the distribution of income affects production and price levels, challenging some traditional economic views. It highlights the importance of underlying production processes and interactions in determining the economic outcomes, providing a framework for analyzing how different sectors of the economy influence each other.