The agents of production are the commodities themselves : On the classical theory of production, distribution and value

The paper discusses the classical theory of production, distribution and value as interpreted by Piero Sraffa in his published and unpublished work. The emphasis is on the characteristic features of the theory, including its objectivist orientation; its explanation of all property incomes in terms of the social surplus generated in production conceived of as a circular flow; and its treatment of wages either as paid out of social capital (given inventory wages) or as paid out of the surplus (a given share of wages). The latter concept is traced back to Ricardo's proportional wages.