Abstract
We discuss the evolution of the Sraffian project, initiated in 1962 by Garegnani, developing a long period theory of effective demand, analyzing its methodological and analytical aspects. Starting with the question concerning the compatibility between the principle of effective demand and the classical surplus approach, we then deal with the relationship between the actual and normal degrees of capacity utilization and the problem of the dual character of investment. These concepts are then related to the notion of long period positions and the analysis of the adjustment of capacity to demand in the process of capital accumulation.
Keywords:
Garegnani; Effective demand; Accumulation; Surplus approach; Induced investment