[OPE-L:7265] Re: Re: Re: TSS

From: Allin Cottrell (cottrell@wfu.edu)
Date: Mon May 27 2002 - 22:12:42 EDT

On Mon, 27 May 2002, Rakesh Bhandari wrote:

> But Freeman's use of difference equations is not meant to explain
> the formation of an average rate of profit but rather the effect on
> the rate of profit from continuous or interperiodic productivity
> change. While it is true that fixed capital is only replaced
> periodically, it remains plausible that different firms within a
> branch are replacing fixed capital at different points while all
> firms are continuously achieving organizational and efficiency
> improvements.

You do realize that difference equations can't be used to model
continuous change?  Differential equations are required for that job.
This is not a trivial point.  Paul C has argued that TSS gets at least
some of its particular results by slicing time into "periods" rather
than attempting to model continuous change.


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