The Rehn-Meidner Model of Wage and Productivity Policy. A Sraffian Analysis

The Rehn-Meidner Model of Wage and Productivity Policy. A Sraffian Analysis
The mainstream neoclassical school treats labour as any other commodity, where demand and supply meet on a voluntary and equal basis. It also assumes that the best method for its allocation is open market coordination. The paper first outlines the epistemological faults in this model. It then continues to discuss the alternative model, as charted by two Swedish economists, Gösta Rehn and Rudolf Meidner.