[OPE-L:7977] Re: Re: relation of VCC to OCC

From: Rakesh Bhandari (rakeshb@stanford.edu)
Date: Sat Nov 09 2002 - 13:18:48 EST

re Fred's 7975.

>I have not had the time to read carefully the flurry of posts on the TCC,
>OCC, and VCC, but I would like to add a quick comment. 
>I agree mostly with Rakesh.  The OCC is the VCC in a restricted sense - in
>the sense that the VCC is affected only by technological change.

As I now remember finding your careful analysis of this in your book 
very illuminating indeed, I am sure this is where I got my basic idea 
from. I had just forgotten the source over the last eight years.

>The VCC
>is also affected by other factors besides  technological change, like
>wages, the distribution of labor and capital across industries, the
>turnover time of capital, etc.

Marx's examples of others factors seem to focus on changes in the 
value of raw materials and ancillary capital not effected by 
technological change. I am unclear about what you mean by "the 
distribution of labor and capital across industries."

>But the OCC abstracts from all these other
>factors and serves to focus the analysis solely on the effects of
>technological change on the VCC, and ultimately on the rate of
>profit. The OCC is like a general ceteris paribus assumption: holding all
>other factors constant, how does technological change affect the VCC?

This general ceteris paribus assumption seem to allow Marx to 
construct a thought experiment by which he can test his theory of 
historical materialism by isolating the contradiction between the 
forces of production and relations of production.

Yours, Rakesh

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