From post-Keynesian to historical price theory, part I: facts, theory and empirically grounded pricing model∗

Abstract

The paper develops an empirically grounded pricing model by first examining the business enterprise pricing equation and its empirical features, and then secondly examining the empirical properties of the prices set by the pricing equations. The third part of the paper is devoted to laying out the empirically grounded pricing model and then delineating its empirical and theoretical properties. The paper concludes that, since the pricing model is embedded in an empirical, historical context, it provides the basis for developing a historical theory of prices.