[OPE-L:4983] Re: Comments on 3 recent debates

From: Rakesh Narpat Bhandari (rakeshb@Stanford.EDU)
Date: Tue Feb 20 2001 - 00:23:16 EST

re 4982

>A few comments on matters recently debated.
>1. Price of production and technological change.
>I'm with Fred in that I don't see simultaneous equations as evil:

The very point of Fred's elaboration of his macro method is to 
counterpose it sharply to simultaneous equations! For example, the 
methods yield  different magnitudes in the average rate of profit 
once there are changes in the technical conditions in a luxury 
sector--Andrew K and I once had a big fight about this.  But Fred 
will elaborate (or hopefully he will have time to do so). And I think 
he can  provide the numbers to show why his method is subtantively 
different than simultaneous equations.

>I prefer this interpretation, despite its problems, because the
>alternative is worse, namely that Marx was just gibbering when he made
>his "double divergence" statements.  I haven't seen a rationalization
>of these statements, from the proponents of "cost-price plus", that
>makes any sense to me.

Thank you for noticing. As I said, it is interesting that on this 
issue Alejandro, Andrew K and Fred are all agreed against me and (I 
guess) you too.

Yours, Rakesh

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