[OPE-L:4596] Re: Re: Part of My Confusion on the Transformation

From: Ajit Sinha (ajitsinha@lbsnaa.ernet.in)
Date: Mon Dec 04 2000 - 01:06:45 EST

John Ernst wrote:

> Thanks for the bit of clarity, Duncan (OPE-L 4590).
> At 04:37 PM 12/01/2000 -0500, you wrote:
> >I think Marx just didn't get that far. He seems to have been
> >following the Smithian theory of competition, which envisions capital
> >as moving from low profit rate sectors to high profit rate sectors.
> >As you've pointed out, when capital goods have long lifetimes,
> >there's always a major expectational or prospective element in
> >estimating the profit rate, so presumably the relevant profit rate
> >for this competitive movement of capitals would be a prospective, not
> >necessarily a realized profit rate. And technical change could make
> >the expectations very wrong. Perhaps this is one of the factors that
> >led the Classical political economists to view competition as a
> >gradual, imperfect tendency, that manifested itself in a
> >"gravitation" of prices around natural prices (or prices of
> >production) rather than as an attained equilibrium.
> >
> >Duncan
> Given that we are to use an average RRI in computing prices
> of production,  I'm still unclear and repeat my question.
> "How do you compute the values that are to be transformed from a given
> set of physical quantities?"


It is because computation of values from a given set of physical
quantitites has nothing to do with RRI. Cheers, ajit sinha

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