Scarcity of Resources in a Sraffian Framework of International Trade

This paper deals with the theory of differential rent within a Sraffian small open economy. Its aim is to study the determination of the wage rate, the rent rates and the activity level of each productive process when the profit rate is given, and either the vector of final demand, or the available homogenous labour, is exogenously set. It also analyses the relation between the total value of the net product and the labour employed and shows that it is not monotonic.