[OPE-L:8596] Re: long term centers of gravity?

From: gerald_a_levy (gerald_a_levy@msn.com)
Date: Wed Mar 12 2003 - 21:43:31 EST

Re [8592]:

> FROP may also emerge under
> alternative mechanisms of price determination consistent with the
> steady-state condition that equates input and output prices.  For example,
> if you abandon the auction-style Walrasian model of equilibrium wage
> determination for one based on a certain form of sequential matching (more
> relevant for the analysis of labor markets, if you ask me), then a FROP
> can be shown to emerge in equilibrium without any differentiation between
> input and output prices.  If interested, see my October 1997
> Metroeconomica article demonstrating this.  It generalizes and provides a
> microfoundation for earlier results by Foley and Laibman, who both in
> effect assume that  the wage share of net product is invariant to
> technical change.

Hi Gil.
Can you show, though, a fall in the general rate of profit _and_ a rising
rate of surplus value?

In solidarity, Jerry

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