Theodore Mariolis

The Kurz–Salvadori eigenequation concerns Sraffian closed, single‐product–circulating capital economies and determines the unique economically relevant profit rate and price vector that correspond to an exogenously given money wage rate. This paper approaches the Kurz–Salvadori eigenequation as a (semi‐)positive rank‐one matrix perturbation of the zero‐wage price system and shows the connection between Piero Sraffa's linear profit–money wage rate relationships and Alfred Brauer's theorem for the eigenpairs of special rank‐one perturbations of a matrix. Thus, it also points out that Sraffa implicitly provided a proof (though not a general or complete one) of Brauer's theorem.

Using a multi-sector model, with joint-products and heterogeneous labour, and data from the Supply and Use Tables, this paper analyses the inter-sectoral structure of the Greek economy and estimates the COVID-19 multiplier effects on this economy. It is found that the economy is heavily dependent on imports of industrial commodities, while significant multiplier effects are concentrated, primarily, in services and, secondarily, in the primary production. Furthermore, using these estimations and the available facts and figures about the COVID-19 impact on the elements of autonomous demand in 2020, we estimate a decrease in GDP in the range of 5.67–7.16 per cent, a decrease in the levels of employment in the range of 5.32–7.20 per cent, and a decrease in total imports in the range of 10.40–15.53 per cent, respectively. The evaluation of the results of our analysis indicates that, on the one hand, a short-term demand management recovery programme could be implemented, mainly, through the Public Sector and, secondarily, the Tourism Sector, while, on the other hand, a long-term growth-oriented policy should be directed towards industrial production and implement policies of import substitution.