Analysing technical change with heterodox price theories

Elements of price theory from Schumpeterian, Sraffian and post-Keynesian economics are combined to analyse the impact of labour-saving technical change on prices. The resulting synthesis incorporates the realism of post-Keynesian pricing rules and the emphasis on long-period analysis by Sraffa along with Schumpeter’s insight that capitalism develops ‘from within’ in a disruptive and uneven manner through innovations. Applying elements from heterodox theories to analyse the relationship between technical change and the movement of prices demonstrates the fruitfulness of heterodox price theory in understanding the development of modern capitalist economies.