Georg Charasoff: A Pioneer in the Theory of Linear Production Systems

Abstract

This paper exposes mathematically Charasoff s results on linear production systems. Charasoff developed an algorithm for the iterative calculation of the Leontief inverse, the concepts of basic and non-basic commodities, as well as the Srajfian standard system. This allowed him, given the real wage rate, to calculate the profit rate independently of prices as the ratio of two physically homogeneous magnitudes, and then the prices for an already given profit rate. Therefore, as early as 1910, Charasoff had developed significant concepts of the theory of linear production systems, which long afterwards became more broadly known through the works of Leontief and Sraffa.