Re: The increasing transformation problem

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Thu Jun 05 2003 - 10:42:04 EDT

Ernesto Screpanti wrote:

> Problem:
> When the organic composition of capital is not uniform, production prices
> are different from labour values.
> Is it possible to say that the greater the dispersion of organic
> compositions the higher the differences between prices and labour values.
> In other words: is it true that the price-value differences are an
> increasing function of the differences between the actual and the average
> organic composition of capital?

There is some evidence to support this.

Values are generally equally good as or better than production prices
as estimates of market prices.
This is supported by a number of studies.

but there is a positive correlation between
o and m/v where
m= market price
v= value of a commodity
o = organic composition of the capital used in making it.
This result is supported by investigations that I have done
with Allin.

What is interesting is that the correlation is not a strong as
predicted by the theory in volume III of capital. Actual
prices seem to be about half way between untransformed
values and fully transformed prices of production.

> My intuitive answer is Yes. But I do not trust intuition so much.
> Does anybody know if that proposition was proved by somebody?
> Ernesto

Paul Cockshott
Dept Computing Science
University of Glasgow

0141 330 3125

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