[OPE-L:4027] Re: Re: The Transformation Non-Problem and the Non-Transformation Problem

From: Rakesh Narpat Bhandari (rakeshb@Stanford.EDU)
Date: Mon Oct 09 2000 - 05:56:06 EDT

in reply to Andrew's 4017

>Lefteris:  "how do you determine it?"
>That is the key question of all quantitative value theory of whatever
>stripe (neoclassical, post-Keynesian, Sraffian, etc.), IMHO.  The answer
>depends on the theory in question.  P[t] is given BEFORE production, and
>let's assume A and B are given.  Then either the P[t+1] are determined
>exogenously (e.g., by "demand," as in PK theory) which then determines r;
>or r is determined exogenously, which then determines the P[t+1].

Andrew, in the last line you mean endogenously, right?

>Marx argues in the latter way.  Total surplus-value or profit is
>determined by (and is the monetary expression of) the amount of
>surplus-labor extracted in capitalist production -- BEFORE the outputs B
>are sold.

Isn't just the maximum total surplus value and and r being determined 
before the outputs B are sold? After all, in the real world, D will 
not equal S, surplus value will be siphoned over in various ways 
which will depress the real r below the maximum r.

>   And
>they don't need to be determined simultaneously, despite what the
>"Sraffians" tell us.  They can be determined, for instance, just as Marx
>determines them.

But how then how do you propose to determine the input unit prices on 
the basis of the data in Marx's tableaux or Allin's interdependent 
production model? And if you can't determine them, then how will you 
get the right cost prices (k) and the correct prod prices for the 
outputs (kr)? And if you can't determine prices rigorously, what kind 
of theory is this?!

All the best, Rakesh

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