[OPE-L:5144] Re: Re: RE: Re: comparative statics

From: Steve Keen (s.keen@uws.edu.au)
Date: Sat Mar 10 2001 - 14:58:56 EST

No to your final question Rakesh; but I expect that I will still find an 
inconsistency in any dynamic formulation of a strict labor theory of value 
with multiple sectors.
At 10:03 AM 3/10/01 -0800, you wrote:
>re 5134
>>   The existing
>>technical conditions of production are more or less objective facts, as are
>>the living standards of workers, and while they do change, they tend to
>>change rather slowly over time, so that not much violence is done to
>>reality by taking them as given when explaining the profit rate and
>>relative prices.
>Hi Gary,
>How should we go about operationalizing and testing this hypothesis? And 
>if Ricardo did not think this even before the development of science-based 
>industry, why should we think so today:  "alterations in the quantity of 
>labour necessary to produce commodities are a DAILY occurence. Every 
>improvement in machinery, in tools, in builidngs, in raising the raw 
>material saves labour, and enables us to produce the commodity to which 
>the improvement is applied with more facility, and consequently its value 
>alters." (Principles, p. 36, Sraffa's ed; my emphasis).
>One more question: are you and Steve denying that one will get different 
>unit values and a different profit rate if one uses Alan F's difference 
>equations instead of Walrasian/Sraffian simultaneous ones?
>Yours, Rakesh

Dr. Steve Keen
Senior Lecturer
Economics & Finance
Campbelltown, Building 11 Room 30,
School of Economics and Finance
s.keen@uws.edu.au 61 2 4620-3016 Fax 61 2 4626-6683
Home 02 9558-8018 Mobile 0409 716 088
Home Page: http://bus.macarthur.uws.edu.au/steve-keen/

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