Mapping Iran s System of National Accounts to Classical Economic Categories (original) (raw)

The aim of this article is to estimate the main categories of classical economics in Iran from 1986 to 2016 using the method of Shaikh and Tonak (1994). The article first provides a theoretical discussion on the distinction between productive and unproductive labour, and this distinction is used to analyse the distribution of total value in the economy. Next, products and economic activities are reclassified to create classical basic tables and examine the trends of key variables in the classical economy. Finally, the value composition of capital and the general rate of profit are estimated using three models: the Circulating Capital Model, the Fixed Capital Model, and the Single Turnover Model. The findings indicate that the years under study can be divided into three periods based on the components of the most fundamental category of classical economics, which is the rate of profit. These periods are referred to as consolidation, deepening, and crisis phase of liberalism.