[OPE-L:4999] Re: Luxury Production: Karl vs. Fred and Rakesh

From: Gerald_A_Levy (Gerald_A_Levy@email.msn.com)
Date: Tue Feb 20 2001 - 13:00:52 EST

Re Andrew K's [OPE-L:4998]:

 > I.  Assume a two-sector economy.  Sector f produces > food by means  of
food and living labor; sector y
> produces yachts, a luxury good,
> by means of food and living labor.  Workers'
> consumption consists
> of food.  There is no fixed capital (for simplicity).
<snip, JL>
> .  Technical change in yacht
> production has no effect on its magnitude.  Q.E.D.

I could very well have missed it, but I didn't see the equations for
technical change in your model (or "illustration"  ... or "numerical
example".  Pick whatever term you prefer).  What is the nature of the
technical change that occurs in your 2-sector circulating capital-only

btw, as someone who likes to sail, I was somewhat tickled by the stipulation
that food is the only means of production used to produce yachts.  I don't
think that boat will  float (but that is another story that I would agree is
irrelevant for the purposes of this discussion).

In solidarity, Jerry

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