[OPE-L:4054] RE: Re: Re: RE: Re: Re: Re: m in Marx's theory

From: P.J.Wells@open.ac.uk
Date: Thu Oct 12 2000 - 06:37:22 EDT

Paul C wrote [#4047]

> Why would the distribution of the log of the organic compositions be
> gaussian?
> Does not matter if you take industries or firms.
> occ = c/v 
> in log form = log c - log v
> if c and v are random variables, log occ is then in the form
> of a sum of random variables, and thus will have a Gaussian distribution
	Is this by some version of the central limit theorem? Doesn't one
need a sum of rather more variables than two to get this?

	It seems a very strong result: if true, any random variable which is
the ratio or product of two others must have a log-normal distribution --
including, among others, not only the rate of profit and the rate of surplus
value, but also Farjoun and Machover's psi (specific price).

	F&M claim that the first has a gamma distribution, the second is
"almost" degenerate (tho' I suppose this doesn't rule out an
"almost-degenerate" log normal), and the third normal (in fact, they use the
central limit theorem to get this last).

	Paul, were you writing in haste here?



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