2, 3 & 4 October 2002.

The purpose of this conference is to bring together a group of economists working in the tradition of the classical surplus approach in the way it was revived by the Italian born and Cambridge, UK based economist Piero Sraffa to discuss some fundamental problems associated with Growth , Distribution and Relative Prices in the context of economic development.

The research programme of the Modern Classical Surplus Approach is characterised by two main projects. There is the first (and perhaps better known) negative project where followers of this approach have continually provided a rigorous critique of neoclassical general equilibrium theory, which is the ultimate basis for the neo-liberal economic policies and ideology which have led to a drastic slowdown in economic growth and a worsening of income distribution in the last two decades, both in the advanced, and more importantly, in the developing economies.

There is also a second, positive project of reconstructing economics using a modern version of the classical approach which is based on theories of distribution and relative prices organised around the concept of the economic surplus with its emphasis on technology and institutions, combined with a Keynesian perspective on the determination of output and the pace of accumulation, with their internal and external constraints.

The modern classical surplus approach gives a sound and rigorous scientific basis for a discussion of alternative development strategies, which is at the same time entirely free from the ideological, methodological and theoretical straightjacket of orthodox economic theory.

Both the critique of flawed orthodox theories and policies and the provision of a comprehensive alternative framework for analysing the process of economic development have advanced in the last few years. In this conference which we will place special emphasis on the less well known positive project of reconstruction and bring together the findings of various scholars working in the classical tradition of Piero Sraffa in different advanced countries (Italy, Austria, USA, Australia, Germany) with the research of our own growing Brazilian group of followers of this approach.

The scientific committee of the conference is composed by:

• Franklin Serrano, Universidade Federal de Rio de Janeiro and member of the executive committee of the International Development Economics Associates (IDEAs) network
• Antonio Henrique silveira, Universidade Federal da Bahia and executive secretary of the Brazilian Graduate Economics Association (ANPEC)
• Joao Damasio, Universidade Federal da Bahia, and former secretary general of the Brazilian Graduate Economics Association

We will also endeavour to bring a number of research students and research assistants who want to get further training in the classical surplus approach to attend the conference.
 
The conference is going to be held in Salvador, Bahia, Brazil on October 2,3 and 4, 2002.
 
An IDEAs (International Development Economics Associates- www.networkideas.org) initiative to promote the teaching, research and applied analysis based on heterodox approaches to economics in the developing countries. The conference will be held at the Bahia Othon Palace Hotel, at Praia de Ondina, Salvador Bahia on October 2,3 and 4 , 2002.
 
In each session (but the last) two related papers will be presented (each presentation should not last more than forty minutes) followed by a general discussion.
 
Conference Programme
Wednesday, Oct 2nd , 9 a.m.

Franklin Serrano (UFRJ and IDEAs) "The IDEAs Network "

The Classical Surplus Approach and the Analysis of Economic Policy and Accumulation Pierangelo Garegnani (Roma 3)

"On Classical Economic Theory and on Policy Analysis: a Comment on a Review Article''
Attilio Trezzini (Roma 3) and P. Garegnani (Roma 3)

"The irreversibility of consumption and economic growth"

Discussion
 
Coffee break

Applications of the Classical Theory of Rent
 
Christian Lager (UniGraz) "Problems with the Leontief Pollution Model and a Ricardian Solution"
 
Marco Piccioni (UNapoli) & Fabio Ravagnani (Roma1) "Absolute rent and the normal price of exhaustible resources".

Discussion
 
Lunch

Wednesday, Oct 2nd 3 p.m.
 
Technical Change and Distribution in the American Economy, viewed from a Classical Standpoint
 
Carlos Medeiros (UFRJ) "Post War Technical Change in the USA as a Military Enterprise"
 
Massimo Pivetti (Roma1) "The monetary theory of distribution and the American case"
 
Discussion
 
Coffee break
 
Growth and the Balance of Payments Constraint  I
 
Fabio Freitas (UFRJ) "Kaldor on 'demand led growth' and the balance of payments constraint: a critical view"

Franklin Serrano (UFRJ) " From 'Static' Gold to the Floating Dollar"
 
Thursday, Oct 3rd , 9 a. m.
 
Classical Analyses of Accumulation, Distribution and Capacity Utilisation
 
Graham White (U Sydney) "aspects of the adjustment of market prices to normal prices and capacity utilization"

Fernando Vianello (Roma1) "Competition, Capital Accumulation and the Rate of Profits. Some Critical Remarks on Underconsumptionism and the Steady-State Hypothesis"
 
Discussion
 
Coffee break
 
Growth and the Balance of Payments Constraint II

Nelson Barbosa (UFRJ) "The Balance of Payments Constraint: From Balanced Trade to Sustainable Debt"

Antonella Palumbo (Roma3) "Aggregate demand and growth: an assessment of the balance-of-payments-constrained theory of growth"

Discussion

Lunch

Thursday, Oct 3rd , 3 p. m.
 
Classical Analyses of Economic Policy in Brazil and Argentina

Matias Vernengo (Kalamazoo) "Fiscal Stance and Interest Rate policy"

Carlos Pinkusfeld Bastos (UFRJ) "Analysis of Brazilian Inflation and Stabilization"

Discussion

Coffee Break
 
Critical Analyses of "Dynamic" Theories and the "Steady State"

Joao Damasio (UFBA) “The consumption turnpike and normal prices"

Pierangelo Garegnani (Roma3) “Two Notes on Hahn on the "Neo-Ricardians"

Discussion

Friday, Oct 4th 2002 , 9 a. m.

Recent Developments in the Critique of Neoclassical General Equilibrium Theories.

Saverio Fratini (Roma3) "The Index Theorem and the Uniqueness of Equilibrium with Production: a Discussion"

Bertram Schefold (U. Frankfurt) "A note on reswitching and the instability of intertemporal equilibrium."

Discussion

Coffee Break

The Relationship Between Market and Normal Prices in the Classical Approach Antonio H. P. Silveira (UFBA) "A Formal Model of Gravitation"
 
Luiz Macedo (UFMG) "Note on Smith's Theory of Demand and Market Price"
 
Discussion
 
Coffee Break
 
Sraffa and the History of Economic Thought (lecture in Honour of Prof. Ricardo Tolipan)
 
Heinz D. Kurz (UniGraz) "Sraffa and Bortkiewicz"

Final discussion

Lunch

September 26, 2002.