[OPE-L:4838] Re: Re: is there a real tendency for the equalization of profit rates?

From: Paul Cockshott (paul@cockshott.com)
Date: Tue Feb 06 2001 - 06:46:44 EST

On Mon, 05 Feb 2001, you wrote:
> Paul C wrote in [OPE-L:4836]:
> > Note that what is crucial for the price of production
> > hypothesis is  not equalization of sectoral rates
> > of profit, but that these sectoral  rates of profit should
> > be statistically independent of the sectoral  organic
> > compositions of capital.
> Why is whether (or not) there is an observable tendency for the equalization
> of sectoral rates of profit not (also)crucial to an empirical investigation
> of whether there are (or are not) prices of production?
> In solidarity, Jerry

One can still have a perfectly plausible price of production theory
if actual rates of profit are a non-degenerate random variable, provided
that the rates or profit are not correlated with organic composition.
The alternative explanation, that prices have values rather than
prices of production as their center of gravity would predict a
negative correlation between profit rates and organic compositions.
In order to test the price of production hypothesis this is the
differentia specifica.
Paul Cockshott, University of Glasgow, Glasgow, Scotland
0141 330 3125  mobile:07946 476966

This archive was generated by hypermail 2b30 : Thu Mar 01 2001 - 14:01:38 EST